VMC, Inc. Newsletter

Well it's official - Sheila Grosdidier, consultant and partner in VMC, Inc was named speaker of the year for 2008 by the North American Veterinary Conference! If that is not an accomplishment in and of itself, this is the third time Sheila has been named speaker of the year by the NAVC. I am not sure, and am inquiring with the NAVC, but I think she is the only one to have EVER accomplished this goal! Way to go Sheila! Congratulations!

This month we focus on the economy and the effect it is having on veterinary practices throughout the country. Monica Dixon Perry does an excellent job in her feature article discussing this subject and providing some real life examples. The bottom line seems to be that the progressive practices are being less affected. You can look at your practice's bottom line and see it flat or decreasing and say "Oh, well, it's the economy" or you can say, "No, I refuse to believe it is the economy" and work to improve your practice income and reduce its expenses. As practice managers, I think it is our job to always work to improve upon on practice and grow it, not only in client numbers, but average per client transaction and client bonding rate. In this type of economic environment it is even more important than ever to exceed client expectations and provide excellent customer service. Remember - price is only an issue in the absence of value. Let's show our clients the value of the services we provide and cost will not be a factor. In the last recession, the fortune 500 companies were surveyed and asked "What did you do to help recession-proof your business?" The overwhelming response was "Reduce our inventory". Remember - the two expenses we can most control that will have a significant impact on our practice's bottom line are inventory costs and support staff costs, so make sure we monitor these while providing an excellence of customer service.

I hope you enjoy this month's newsletter.

Mark Opperman
President, VMC Inc.

Let us hear from you - tell us what you'd like to see in future issues. You can contact us at vmc@vmc-inc.com

In This Economy There IS Room for Optimism - and Here's Proof

by Monica Dixon Perry, CVPM

The economy remains in the forefront of our thoughts and concerns. It certainly appears that the last quarter of 2008 was doom and gloom for most. The last quarter of 2008 became scary territory and for the first time in a long time had clients rightly shaking in their boots. Although 2008 is not that far behind us, I want to share some of the feedback we are receiving about the first few months of 2009.

COBRA Immediate Changes

by Sheila Grosdidier, BS, RVT, MCP

COBRA Continuation Coverage Assistance under the American Recovery and Reinvestment Act

As part of the government stimulus package, the US government will subsidize up to 65% of the cost of COBRA premiums for eligible workers who are involuntarily terminated for other than cause. The subsidy is being implemented as an employer obligation to pay 65% of the COBRA premium (this includes the 2% allowable surcharge for administrative expense) for eligible individuals who have elected COBRA effective September 1, 2008 as well as those individuals eligible for COBRA or Continuation coverage who declined at the time. The employer will then be reimbursed for these COBRA premiums through payroll tax credits and/or refunds. The IRS will send employers a revised Form 941 for the first quarter of 2009 for employers to claim the COBRA premium assistance payments credit.

Who is Eligible?
- Individuals who have been involuntarily terminated for other than cause on and after September 1, 2008;
- There is a high income restriction including phase out of eligibility for high income individuals
Who Must Comply?
- Employers subject to Federal COBRA;
- Small employers subject to State Continuation legislation
When is this Effective?
- Effective immediately.
- The subsidy begins for coverage starting March 1, 2009;
- There is a 60 day transition period where employers can still collect 100% of the premium and "make up" the subsidy in future premiums, if necessary.
How long is the Subsidy effective?
- 9 months
- Will end earlier if the individual becomes eligible for other coverage.

All veterinary practices who provide health insurance for their team members should contact your insurance agent to discuss how these changes affect you.

For more details see the following websites:
US Department of Labor Employee Benefits Security Administration web site

COBRA website

The Use of Social Networking Sites

by Sheila Grosdidier, BS, RVT, MCP

Using social networking sites such as MySpace or Facebook to check out a job candidate can set your clinic up for legal liability issues. According to Workforce.com, the risks that you face will be charges of employment discrimination and litigation.

Why is using these sites such a risk? A candidate who is denied employment might accuse the clinic of using the information that was obtained from the website to deny them employment if they are a member of a protected class. According to Workforce.com, it is also illegal in some states to make a job offer decision based on an applicant's political activities. Again, this is something that can be found in the social networking sites.

It is important, when making a hiring decision, for you to put blinders on and focus on how well the applicant can do the job and how well the person fits with your team. Information that you discover on social networking sites is not always true and can certainly lead you down a dangerous path. At this time there is nothing illegal about looking at someone's social profile. However, this is new territory and clinic owners and practice managers should think seriously before going to these sites.