Page 35 - Inventory Manager

10005.1 Pricing and Markup Guidelines

Result Statement: The fee schedule reflects our medical standard of care and target client
demographic, it also represents the value of our services and products. Setting fees appropriately
and charging for all of the services we provide is critical to our practice's financial success and gives
us the resources we need to continue to providing quality patient care and excellent client service.

General Prescription Markups –

3X cost which is listed in AVImark under the “general” tab for each item listed as “markup percent”.

Example: 3X our cost would be 170 (100 +170 = 270% total).

As a general rule: Prescription markups are typically 3 X cost. The special circumstances where this
does not apply are listed below. There will be instances where we have to make judgment calls based
on the market demand, internet pharmacies, competition, etc. In cases requiring judgment or analysis
the executive director or owner needs to be involved in deciding the markup and listing it below and e-
mailing the new list to the owner for the master copy of the manual.

Prescription Fees “P” and Handling Fees “H”:

P – in general pills that are counted, or meds that are handled outside of the original packaging gets a
prescription fee (P code in AVImark) in addition to the markup.

H – In general medications that need to be mixed up or compounded by us gets the handling fee (H code
in AVImark) in ADDITION to the Prescription code (P) and markup in AVImark.

Outside Labs (under treatment list):

Typically 2.5 X cost with certain exceptions for special pricing, fecal tests, heartworms tests, etc.

Prepackaged shoppable (proin, rimadyl, metacam) – varies depending on internet pharmacy costs but
typically is about 100% markup.

The affordability of veterinary generic drugs provides multiple benefits for our practice. Our profitability
improves because veterinary generic drugs cost less than brand-name drugs, stocking our pharmacy
with veterinary generics reduces overhead costs and lets us price drugs competitively with local big-box
commercial pharmacies (Shoppable) and online retailers so that fewer of our clients’ prescriptions walk
out the door.

By offering veterinary generic drugs, we can provide affordable pet medicines conveniently for our
clients and retain the benefits of those sales in our practice. With affordable veterinary generics, we can
continue to provide our clients with one-stop service—individualized pet healthcare recommendations,
high-quality patient care, and a convenient hospital pharmacy

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