OVMA Focus Magazine

Mar/Apr 2017 Vol. 36 no. 2

Issue link: https://publications.ovma.org/i/787638

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COST ANALYSIS 101 Darren Osborne MA, OVMA Director of Economic Research We know that client wellness plans increase both clients and revenue (Read about this in Focus Magazine, March/April 2014). Focusing more attention on clients and their pets pays off because wellness plan clients come back more often and spend more than average. Plus, after the plans are set-up, ongoing administration and e-commerce costs are marginal. Trying to measure the effectiveness of a wellness plan for your staff is not as easy. According to a 2015 Study by Quantum Workplace and Limeade (Source: limeade.com), when employees feel like their employers actually care about their well-being, they are 38 percent more engaged and 18 percent more likely to go the extra mile. So how do you measure "care"? One method is to the look at hospitals that provide a group health program (health and dental benefits) for their staff. If we assume that providing an optional group health plan is a metric to measure caring we should see a difference between hospitals with and without a benefits plan. Results from the 2016 Ontario Economic Survey show 43 per cent of companion animal hospitals provided a group benefits plan for their staff. Of that group, the cost or contribution from the hospital varied from 100 percent (hospital paid for the total cost of the plan for all employees) to 50 percent (note that employees cannot pay more than their employer does). The most popular method was for the hospital to split the cost of the plan with employees 50/50 with 44 percent of hospitals opting for this method. A close second (38 percent) was for the hospital to pay 100 percent of the plan. Many veterinarians are directing their clients to wellness plans and it is paying off both clinically and financially. Focusing attention on improving staff wellness can have similar rewards. Data from the recent economic survey shows that investing in staff wellness not only improves their health, but also decreases staff costs and improves revenue. Employee Benefits Package Hospital Contribution for Group Benefits Plan 38% 44% 8% 5% 5% 100% Between 50% – 100% 50% Between 0 and 50% 0% (Employee pays) Continued on page 18 16 FOCUS March/April 2017

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