What to charge for digital X-rays
Pricing strategies can be challenging. But when appropriately managed, pricing can help the clinic meet its bottom line while also keeping clients happy.
Here are some things to consider when determining veterinary digital radiography costs…
Calculate Your Cost Per Radiograph or Study
This involves the sum total of many different factors, including…
The cost of your radiography equipment. Include the total monthly payment on the x-ray system if you financed it, as well as any service plan, software, or other ongoing payments.
If it’s easier, break down the monthly cost into weekly amounts or any increment that tells you how much income the equipment needs to bring in per day or per week.
Staffing costs. How many team members are needed per radiographic study? And how long are studies expected to take? This should give you a rough idea of the staff costs per study. Allow some margin of error for reshoots, as well as a bit of a learning curve in the beginning.
It would also be good to budget for team training. Any new piece of veterinary equipment (even a user-friendly one) requires time for people to build familiarity and maximize efficiency. While training requires an up-front time and cost investment, it will likely promote efficiency and maximize equipment usage and ROI in the long term.
Lost income opportunities. This is where things start to get a bit more complicated. It can help to work with a business professional, especially one familiar with veterinary medicine.
Opportunities lost basically means that during the time your team is performing radiographs, they are unable to do anything else, such as take in appointments. So, perhaps fewer appointments can be scheduled, which leads to a loss of income in one area (routine appointments) while gaining in another (x-ray studies).
Overhead costs. Every business needs to pay for its building, utilities, waste management, and other costs of daily operations. More than likely, this is already included as a percentage or markup in many of your products and services. Radiographic studies should also take this into consideration, as it’s a necessary cost of doing business.
For radiographs specifically, this might also factor in patient positioning aids, protective lead aprons and gear for team members, and safety/regulatory compliance such as radiation badges.
How Much Income Will Radiographic Equipment Produce?
Here are a few considerations that may help you come to an expected dollar amount…
How many radiographs does your practice expect to perform per day/week/month? Also, could this number be increased? For example, maybe more studies will be performed after teaching team members how to convey the value of radiographs to clients, or thanks to a new veterinary DR system that improves efficiency and allows for more studies in less time.
What do you expect that clients will pay for a radiographic study? This is based on knowing your area (including factors like cost of living) and your clientele.
Remember, it’s important to factor in a client’s perception of what a service is worth. This is called value-based pricing. For example, some vets note that clients are willing to pay more for emergency services (emergency x-rays) versus routine or preventive care (senior wellness screenings), because the perceived value is higher to them.
If your practice discovers that costs are high compared to what clients will likely pay, it might be necessary to lower costs as much as possible. For example, maybe buying used veterinary equipment would be the best option, so long as it is in good condition.
Learn the going rate in your area. Never discuss prices directly with other clinics, as this can be considered price fixing and run against antitrust laws. However, it’s usually okay to have a team member call and “secret shop” certain prices. If you’re not sure what’s permitted or not, check with a legal professional.
Also, keep in mind whether your practice is focused on high-end service or on offering the best prices relative to other practices in your area. It’s not always an “apples to apples” comparison, even for local competitors.
Consult helpful resources. Many vets refer to AAHA’s Veterinary Fee Reference as a general guideline for pricing services. Keep in mind recommendations must be adjusted to factors at your clinic or your local area. Also, investigate continuing education resources for practice management, which often include pricing strategies. The Veterinary Information Network (VIN) offers practice management courses, and many conferences might also have this specialty available.
Consider Combining Costs When Relevant
Here are some examples for consideration…
Lower prices for each set of additional images. A lot of the up-front cost involves setting up the study. But once the patient is measured and ready to go, additional views generally go faster than the first ones. So, a five-view study might include a set price for the first two views, then a lower cost per view for the next three. Or a GI contrast study—which might involve at least 10 shots—could include decreased costs for such a large number of views, or even be priced as a package deal.
Combine radiographs with other services—such as sedation or surgical procedures—when relevant. A sedated or anesthetized pet is often easier and faster to position for their x-rays.
Bundle other services when appropriate, such as senior wellness checks that include bloodwork and imaging to screen healthy pets.
Adjust Prices as Needed
Pricing strategies can be an art as much as they are a defined calculation. So, it’s important to be adaptable over time. Circumstances might change in your community. And routine price increases are expected in most industries due to the real costs of inflation.
Consult a Business or Financial Professional
This can all get quite complicated. And most veterinarians and team members much prefer working with animals to managing a business.
Professionals exist for a reason, so be sure to use them to your advantage as needed. This could include business consultants, financial professionals, or others relevant to your situation who are familiar with veterinary practices.
Doing some research and using available resources can help a veterinary practice develop the most effective pricing strategy—and balance client expectations with a good ROI on their new veterinary equipment.
Written by: Dr. Tammy Powell, DVM
