The Efficiency Gap Explained – Why Productivity Isn’t Translating to Profit
Veterinary practices nationwide are producing more than ever. Revenue per full-time employee (FTE) and revenue per staff hour both climbed last year — so why does it still feel like you’re barely keeping up? The answer lies in the efficiency gap uncovered in the 2026 Veterinary Payroll Report.
Understanding the Gap
The report shows that payroll as a percentage of revenue rose from 40.8% to 41.6%, even as productivity metrics improved. That tells a story many practice owners already know: you can work harder without working smarter.
Key Drivers of the Gap
- Inflation and costs outpacing efficiency gains
- Softer transaction volume per DVM
- Support staffing increases are not matched with demand
- Utilization weaknesses in key roles
What This Means for Your Practice
Instead of simply valuing effort, start valuing alignment. The practices that close the efficiency gap understand how payroll, staffing, and demand intersect. We’ll break down clear steps in future posts.
Download the Full Report
Get the complete data behind today’s trends and the top strategies practices are using to improve profitability here.