OVMA Focus Magazine

Mar/Apr 2017 Vol. 36 no. 2

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

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Page 19 of 55

According to the OVMA Insurance Program, providers of the OVMA Group Benefits Program, the average cost for a basic plan in a one doctor hospital with 5 staff in total would be $8,000 per year. This cost would vary depending on how many single staff, couples and families are insured. For hospitals paying 100 percent of the plan, the cost per DVM would be $8,000 per year and for hospitals splitting the cost with staff, the cost would be $4000 per year. In 2016, hospitals that provided group benefits to their staff had higher revenues. Per DVM, revenues were 4.3 percent higher than average if there was a group benefits plan in the hospital. This means that hospitals that spend up to $8,000 on a group benefits plan earn an extra $23,800. Where is the causality? The folks at Limeade, who do research on staff wellness, say that when employees are offered health and dental benefits, they see the gesture as "caring for their well-being" and they will put in more effort. Even more, employment costs did not go up for hospitals with group benefits plans. To account for different hospital sizes, we examined non-DVM staff wages as a percentage of gross revenue and found that hospitals that provided group benefits paid out 0.3 percent lower total wages. This does not mean hospitals with group benefit plans paid lower hourly wages. It means that hospitals with group benefits generally had fewer, more productive staff than hospitals without group benefits. Other wellness related metrics are staff discounts for veterinary services and products. Hospitals that offered a 100% discount to services (46 percent of hospitals) and products at cost (20 percent of hospitals) represent "caring" the most. Similar to group benefits, hospitals that gifted their services to staff and sold them products at cost had 5% higher revenues and lower staff costs. Many of the hospitals that offered group benefit plans were the same hospitals that offered the most generous discounts. While there may not be a direct causality between offering group benefits and higher revenues, the benefit far outweighs the cost. Caring more for staff creates a more productive environment. Change in Revenue Change in Staff Cost Group Benefits Plan + 4% - 0.3% 100% Discount on Services + 5% - 0.1% Veterinary Supplies at Cost + 5% - 0.3% Cost Analysis 101, continued from page 16 18 FOCUS March/April 2017

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