Check the Numbers

Did you know about these expenses that veterinary school graduates usually face?

Just before the July 4 holiday, a pet insurance company issued a press release detailing the Top 10 Claims costing more than $1000. See: http://www.prnewswire.com/news-releases/top-10-most-expensive-pet-health-conditions-124642668.html.

The 10 ranged from intervertebral disc disease surgery at almost $3,300 apiece to ear canal surgery (ablation) costing almost $1,300 each. The average was just shy of $2,000 per procedure.

The number of cases filed was small and certainly not representative of the total number of these cases done every year. The top volume was torn knee ligaments which saw more than 6,800 claims and the bottom was a ruptured bile duct at 102 claims. The average number of cases done for the top 10 was just shy of 1,100.

So let’s do a little back-of-the-envelope math with that average cost of $2,000 and for discussion we’ll call that a day’s gross, okay? There are about 312 total workdays per year counting 52 Saturdays for the ambitious. We’ll skip the holidays and assume they are rolled in to those 53 days you don’t work. I’ll also be generous and assume you are above average capable of 312, 10-hour days or 3120 hours a year.

If a veterinarian did only one of the survey’s average cases per day, each day, and nothing else they bring in $624,000 gross. (If you do the average number of the high-end cases at the average price you pull down a cool $2.2 million!) Divide the $624K by your 3120 hours per year and you make $200/hour—every working hour.

Now let’s say you hire a new graduate uber-vet that works the same hours. Oh yeah, they’ve got to be paid. Let’s be nice and pay the new grad $50,000 ($2k above mean) annually to start.

If a new graduate owes say, $134,000, (the mean for those with debt which is the vast majority) for their education let’s assume they write a $1,340 check to the lender each month; similar to a modest mortgage payment. That’s $16,080 off the top of their salary reducing their monetary compensation to $33,920. The feds will take $8,688 off for a single filer* before any deductions, reducing the cash to $25,232. Kiplinger says the average for all car loans is $479 per month or another $5,748. Now they’re down to $19,494 before we discuss any state taxes, dependents, rent or mortgage, utilities, food, clothes, fuel, insurance, and God-forbid, entertainment.

From the new employee’s perspective, working 3120 hours a year, they make just over $16 per hour. If they make their loan payment, drive an average car, and tithe to Uncle Sam, their pay is now about $6.25 an hour.

Beyond any quibbling and looking at the numbers, albeit somewhat askance, one can’t help but wonder what the sustainability is for the current private practice model given the debt-load to salary ratio?

*Editor's note: Financial data included in this article was provided by the author, who is solely responsible for the research conducted. Please consult a tax attorney or other professional financial organization for related inquiries or consultation.