There is a widening divide in the global economy, and veterinary medicine is not immune. Data from the global Organisation for Economic Co-operation and Development (OECD) highlights a two-speed economy: On one side are the frontier firms (the top 5-10%), which are adopting new technologies, refining processes, and pulling ahead. On the other side are the lagging firms, where productivity is flat or declining.1
The same process is happening in our exam rooms, with high-efficiency veterinary practices pulling away from the pack. While low-efficiency practices see approximately 12 patients per veterinarian per day, high efficiency practices average 21 patients — a 75% increase in care delivery with the same number of doctors.2
The cost of the gap: $600,000 left on the table
We see this gap in our own data. VMG Datalink tracks ‘Revenue per non-veterinarian staff hour,’ a critical measure of how effectively veterinary practices leverage their technicians, assistants and support staff.
- In 2019, the VMG average was $107 per staff hour, while the top 20% produced $123 per staff hour: a $16/hour advantage.3
- In 2025, the VMG average reached $137, while the top 20% climbed to $167: a $30/hour advantage.3
In just six years, the top clinics doubled their hourly advantage. Multiplied across thousands of staff hours, this created a difference of more than $600,000 annually.3 This comparison is only between VMG practices, which are already more profitable than the average American Animal Hospital Association (AAHA) veterinary clinic.4 If we were to compare the top 5-10% of VMG clinics against the remaining 90-95%, rather than the top 20% against all VMG clinics, the contrast would be even greater.
The archipelago effect: Why innovation doesn’t spread
Why does this gap exist? Why doesn’t every practice simply adopt what the ‘frontier’ practices are doing?
The problem isn’t a lack of innovation; it is a lack of diffusion.
Think of independent veterinary medicine as an archipelago with thousands of islands. Each island is an independent practice trying to survive and thrive. Some are flourishing, while others are constrained by limited access to new developments that could help them grow. To bridge the gap, we must overcome five specific barriers. VMG helps members build the bridges, maps, and docks necessary to connect the archipelago and access innovations.
The first barrier: Information isolation.
Each practice is an island: Its knowledge is trapped on its shores. A practice may figure out how to delegate 80% of tasks to credentialed technicians and non-credentialed staff. These expert delegators can see more patients per day while still providing personal attention and quality care, but their insights never reach another veterinary hospital.
VMG’s solution: Accelerate Peer Diffusion. We build bridges and ferry routes that carry ideas between islands. VMG Peer Groups encourage members to share knowledge and experience and support each other’s efforts to improve practice performance. VMG Professional Development programs and Member Congresses ensure that a breakthrough in one clinic can be shared with others facing similar challenges.
The second barrier: Measurement gaps
Many islands are flying blind. Lacking global maps, they see only what’s happening on their own shores. A practice earning $110 per staff hour might feel productive, unaware that the top practices are earning $160 with less stress.3
VMG’s solution: Relentless Benchmarking. We provide maps and navigation charts that make the gap visible and the path forward clear. With VMG Datalink, the VMG Economic Dashboard, and practice-level financial data, members have access to rigorous financial benchmarking. They make the invisible visible, showing where a practice stands relative to the frontier, and highlighting ways to close the gap.
The third barrier: Change resistance
Some island residents continue using familiar older technologies like spears to fish, while others thrive by using nets with the latest sensing technology. In a veterinary practice, that’s like counting on clients to call for their next appointment when they think they need it – which is often too late for early intervention. But introducing new processes to change this familiar approach can feel risky without proof that it will work.
VMG’s solution: Showcase Success. Visible wins make change believable. When a peer practice shares how it reached a 70% forward booking rate, the risk of trying the same approach diminishes. We actively highlight member wins – like VMG member Dr. Paige Andersen of Timber Creek Veterinary Hospital’s successful implementation of on-site child care or Dr. Marty Greer’s groundbreaking introduction of ‘drive-through’ veterinary care.
The fourth barrier: Capital constraints
Small islands can’t always afford or justify maintaining their own ships, ports, or year-round commercial hubs. A three-doctor hospital may want a cloud-based practice system but be unable to support the cost. In veterinary medicine, major suppliers offer significant volume discounts that large practices can easily reach. Those discounts are far out of reach for smaller practices, who thus pay a higher price and may have to settle for a smaller profit margin.
The VMG solution: Strengthen the Foundation. VMG aggregates the buying power of the whole archipelago, sharing infrastructure and spreading costs. VMG’s Preferred Partner program bring competitive vendor pricing and services to independent veterinary practices. This allows the single ‘island’ practice to upgrade its capabilities, allowing it to compete with bigger rivals while remaining profitable.
The fifth barrier: Fragmentation
Like the enormous Scandinavian archipelagos with thousands of islands, many of our independent veterinary practice islands are scattered and isolated. Even when ships arrive at these remote locations, most lack docks or crew to unload them. In veterinary medicine, practices that could benefit from new innovations may be too small to bring on the support staff needed to implement them.
The VMG solution: Building Absorptive Capacity. We equip practices with leadership, processes, and skills to absorb innovations. From leadership training to clinical wet labs on surgical skills and ultrasound proficiency, VMG Professional Development gives your team the ‘dock space’ to receive and implement new tools.
Lifting the archipelago
The problem isn’t innovation — it’s diffusion. The productivity gap is real, and expensive. But it is not inevitable.
To lift the whole archipelago, we need to spread what works, faster and wider. By leveraging peer diffusion, benchmarking, and shared infrastructure, VMG member practices are proving that independent ownership doesn’t mean going it alone. The data proves it: VMG member clinics outperform the national average in profitability and productivity.4
Don’t stay stranded on your island
At VMG, our mission is to cultivate a community that delivers belonging, collaboration, lifelong learning, and a thriving future for independent veterinary practices.
Ready to build your bridge? Talk with us about VMG membership today.
References
- André, C. and Gal, P. (2024), ‘Reviving productivity growth: A review of policies’, OECD Economics Department Working Papers, No. 1822, OECD Publishing, Paris. https://doi.org/10.1787/61244acd-en.
- Ouedraogo, F. B., Weinstein, P., and Lefebvre, S.L. ‘Increased Efficiency Could Lessen the Need for More Staff in Companion Animal Practice.’ JAVMA (2023) 261;9:1357–1362. doi:10.2460/javma.23.03.0163.
- VMG Quarterly Benchmarking Report Q1 2025. Data on file.
- VMG Data on File.
This content is based on a talk given by VMG President Matt Salois, PhD, at the 2025 VMG Veterinary Innovation Summit, a members-only event.