Finding the Hidden Costs in Non-Transparent Technology Deals for Veterinary Practices

Navigating the complex landscape of veterinary technology can often feel like traversing a minefield of hidden costs, opaque contracts, and unforeseen challenges. How do you make smart technology investments that truly benefit your practice without falling prey to common pitfalls? And how can you ensure that the shiny new system you’re eyeing doesn’t become a costly mistake? We’re going to show you in this article.

The Current State of Veterinary Technology Deals

The veterinary tech market is booming, with new solutions popping up left and right. While having options is great, it’s also turning the market into a bit of a maze. Here’s what we’re seeing:

• Limited Pre-Purchase Information: Some vendors are playing hard to get with their product details. They want you to sign an NDA or start the sales process before revealing crucial information.
• High-Pressure Sales Techniques: Time-limited offers and exaggerated claims about competitor shortcomings are all too common. It’s like being herded into a decision before you’ve had time to think it through.
• Bundled Services: Vendors often package core functions with less essential features. It’s like going to the store for milk and coming home with a cart full of groceries you didn’t know you “needed.”
• Opaque Pricing Models: Some pricing structures are more complex than a feline endocrine system. This makes it difficult to figure out the true cost of ownership.
• Ambiguous Data Ownership and Privacy Policies: Understanding who owns your data is crucial and providers tend to fill these policies with legalese making them difficult to understand.

Hidden Costs to Watch Out For

When assessing software costs, know that the sticker price is often just the tip of the iceberg. Like an unexpected diagnosis during a routine check-up, hidden costs can catch you off guard and strain your practice’s budget.

Implementation Fees

Getting your new system up and running isn’t always as simple as flipping a switch. There’s an entire process of integration for your PMS after all. The most common implementation fees to watch out for include:

• Data Migration Costs: Moving your existing data to the new system can be complex and costly.
• Custom Configuration Fees: Tailoring the system to your specific workflow might come with a price tag.
• Hardware Upgrades: Your current equipment may need updates to support the new software.
• Extended Downtime Expenses: If implementation takes longer than expected, it could impact your ability to serve patients.

You can avoid these surprise expenses by asking for a detailed implementation plan with all associated costs before signing any agreement.

Training and Onboarding Costs

A new system is only as good as your team’s ability to use it. Many systems require professional onboarding to use effectively. That always comes with a fee. But, it’s not always a bad investment.

We recommend asking your provider for a detailed plan on what they intend to cover with their training and onboarding fees so you can make an informed decision on whether it’s worth it for your practice. You don’t just want cyber awareness training. You want a plan specific to the software being provided.

Data Migration and Integration Expenses

Your new system doesn’t exist in a vacuum. It needs to integrate with all of your existing software, systems, and hardware. This integration can come with a fee if your provider performs the integration for you. Ask your provider, “What’s involved in integrating this system with our existing tools, and what will it cost?” to gather the information you need.

Contract Lock-In and Early Termination Fees

We try to avoid lock-in contracts and early termination fees, but sometimes the best providers require them. When dealing with a provider that requires lock-in contracts and early termination fees, make sure you get a demo before signing the contract. Also, keep an eye out for sneaky termination fees like data extraction costs for acquiring a copy of the data you input into your provider’s system.

Strategies for Making Smarter Technology Investments

Armed with knowledge about common pitfalls and hidden costs, you’re ready to approach technology investments more strategically. Here are some key strategies to help you make smarter, more informed decisions for your veterinary practice:

• Define Your Needs and Goals Clearly: Before diving into the tech marketplace, take a step back and assess your practice’s specific needs. Identify pain points in your current workflow, list must-have features vs. nice-to-have ones, consider your growth plans for the next 3-5 years, and involve your team in the needs assessment process.
• Do Your Homework: Knowledge is power when it comes to tech investments. Research multiple vendors and solutions, read industry reports like our State of the PMS report, attend industry conferences or webinars to stay updated on tech trends, and consult with trusted colleagues about their experiences.
• Demand Transparency from Vendors: Don’t settle for vague answers or hidden information. Ask for detailed, itemised pricing that includes all potential costs, request clear explanations of contract terms, especially regarding data ownership and termination, insist on comprehensive demos that showcase all relevant features, and push for specifics on implementation timelines and support offerings.
• Prioritise Integration and Scalability: Your new tech should fit seamlessly into your practice and grow with you. Conduct a detailed evaluation of all future costs associated with using the technology from initial training to downtime caused by updates.
• Evaluate the Total Cost of Ownership (TCO): Look beyond the initial price tag. Factor in implementation, training, and ongoing support costs, consider potential productivity impacts during the transition period, account for any necessary hardware upgrades or additional software licenses, and think about long-term costs like upgrades, maintenance, and potential scaling expenses.
• Insist on a Pilot or Trial Period: There’s no substitute for hands-on experience. Negotiate a trial period to test the system in your actual work environment.
• Negotiate Contract Terms: Don’t be afraid to ask for what you need. Push for shorter initial contract terms to reduce risk, negotiate performance guarantees or service level agreements (SLAs), ask for caps on annual price increases, and try to include training and support in the base package.
• Plan for a Smooth Implementation: Set yourself up for success from the start by creating a detailed implementation plan with your vendor that includes a dedicated internal team to manage the transition and realistic timelines that account for potential disruptions. You can also develop a training plan to help your staff embrace new technology.
• Cultivate a Long-term Partnership: View your vendor as a partner in your practice’s success so they can best help you with your practice’s specific needs.

Conclusion

Staying technologically current isn’t just about keeping up—it’s about setting your practice apart and providing the best possible care for your patients. So, take the time to assess your current technology ecosystem, identify areas for improvement, and start planning your next steps. With the right approach, your next technology investment could be the key to unlocking new levels of efficiency, patient care, and practice growth.