The Harvey family purchase a golden retriever from a neighbor who just put a litter up for sale. They decide to neuter the puppy to prevent potential health and behavioral issues that some unneutered pets face. While neutering the new puppy does not guarantee that it will avoid all health issues, it lowers the chances of loss for at least some of them. This is an example of risk mitigation.
With pet ownership comes risk of a pet that could generate considerable healthcare bills.
Pet owners manage this financial risk in different ways.
The ways in which individuals manage risk typically fall into one of four categories: avoidance, mitigation, transfer, and acceptance.
Studies show that the vast majority of people are averse to risk.
Most people transfer risk through purchase of an insurance policy.
2.8.7 Cautions
Each individual has their own risk tolerance which may not align exactly with one of the four categories outlined above.
Reference
1 1 Money's best friend: Growth in the number of insured pets will boost industry demand. IIBISWorld Industry Report OD4612 Pet Insurance in the US. May 2018. https://trupanion.com/‐/media/trupanion/files/linked‐‐pdfs/2018‐‐pet‐‐insurance‐‐industry‐‐report.pdf?la=en‐ca&hash=48CC05DADE2E02029BAAC5C99A1869099760BCC7
Recommended Reading
1 Harley, A. Prospect Theory and Loss Aversion: How Users Make Decisions. www.nngroup.com/articles/prospect‐theory
2 Peters, J. How Our Brain Decides to Get Insurance. Should we invest now in something that may or may not happen later? www.lemonade.com/blog/brain‐decides‐insurance
2.9 Anticipated Costs of Pet Care
Sarah Rumple
Rumpus Writing and Editing LLC, Denver, CO, USA
2.9.1 Summary
Discussing cost of care with clients is not a lesson taught in most veterinary schools, and many veterinarians prefer to avoid the subject, leaving their support staff to deal with upset clients. Owning a pet and providing appropriate veterinary care for that pet's lifetime costs more than most pet owners realize, and veterinarians need to be prepared to discuss costs at the time they make their recommendations.
Transparent and upfront cost discussions with clients based on appropriate healthcare recommendations will lead to improved relationships, happier and more trusting clients, happier team members, and better outcomes for pets.
2.9.2 Veterinarians and Cost Discussions
It's a topic few veterinarians want to discuss, and one even fewer veterinarians were taught how to discuss during veterinary school. The money conversation is so uncomfortable and awkward, veterinarians often make their recommendations without mentioning cost until a client inquires, which can instill feelings of distrust in the pet owner (see 5.11 Discussing Finances for Pet‐Specific Care).
The fear of appearing to be “in it for the money” is not new for veterinarians. Conduct an online search about veterinarians and money, and you'll find countless articles and news pieces about veterinarians recommending seemingly unnecessary diagnostics and treatments in the hope of making more money. As a result, the profession is afraid of talking about money, pet owners lose faith in veterinary healthcare providers, and pets don't get the care they need and deserve.
When veterinarians avoid discussing cost of care with clients, they aren't making the uncomfortable discussion disappear. Instead, they are punting the conversation to other members of the team, who will likely be forced to have the conversation after a sticker‐shocked client confronts them. This puts client care representatives and other team members on the defensive and makes pet owners feel as if the veterinary team was not upfront about the cost of care before services were rendered. When veterinarians neglect to be upfront and transparent about the cost of care, support staff and pet owners are left with a bad taste in their mouths, and that can lead to poor reviews for veterinary hospitals and negative press about the profession.
Two studies published in the Journal of the American Veterinary Medical Association found that pet owners expected veterinarians to initiate discussions of costs upfront, but that those discussions were uncommon [1, 2]. And, when cost was discussed, veterinarians focused on tangibles, such as time and services provided, while pet owners focused on outcome as it related to their pet's health and well‐being [1, 2]. In the earlier study, veterinarians reported feeling undervalued for their efforts, while some pet owners were suspicious about the motivation behind veterinarians' recommendations [1].
This disconnect between veterinarians and pet owners clearly poses barriers for the profession. But, if veterinarians can improve communication, educate clients, and have the cost discussion every time they make a recommendation, some of these challenges can be alleviated.
2.9.3 The Do's and Don'ts of Discussing Cost of Care with Clients
DO make recommendations based on what you believe is best for the pet.
DON'T make recommendations based on what you assume the pet owner can afford.
Never assume you know what a client can or cannot afford, and don't make your recommendations based on those assumptions. Always make your recommendations based on best practices and what you believe would provide the most necessary medical information for you to make an accurate diagnosis and end in the best result for the pet.
DO initiate the cost discussion immediately while explaining your recommendations.
DON'T wait to discuss cost until the client inquires. Be transparent and upfront about costs while making your recommendations. The two should not be different conversations, but should instead be intertwined as one.
DO explain costs as they relate to the betterment of the pet and the outcome your recommendations will lead to.
DON'T attempt to justify costs based on time or services provided. Clients don't care how much a particular piece of diagnostic