There’s a $110,000 Gap Between the Average Veterinary Practice and the Top Ones
Same Industry. Very Different Payroll Outcomes.
Not all veterinary practices face the same payroll pressure, and the difference isn’t random.
In 2025, the average hospital’s gross payroll was 41.6% of revenue. Top-performing hospitals held that number closer to 37.5%. For a practice at the industry average, closing that gap represents approximately $110,000 in efficiency potential. Not theoretical. Not someday. Measurable and repeatable.
What Top Hospitals Are Doing Differently
It’s not that top hospitals are cutting corners or underpaying their teams. The data shows they’re actually performing better on most productivity metrics too.
Revenue per staff hour at top hospitals increased from $114 to $120. Transactions per DVM FTE increased from 3,349 to 3,437 while the industry average declined. Support cost-to-revenue dropped from 20.1% to 19.5%.
What separates them is alignment. Staffing decisions tied to actual demand. Clearer role delegation. Tighter utilization across every department. And active investment in team training so staff can meet the expectations of a more cost-conscious, more selective client base.
The Gap Is Solvable
The difference between 41.6% and 37.5% isn’t about working harder. It’s about working with better visibility into where labor costs are leaking and having a system in place to address them.
Do you know your payroll-to-revenue ratio right now?