No More Missed Revenue: Automated Charge Capture in Veterinary Software

Missed charges are a significant problem in many veterinary practices. They aren’t easy to track and won’t always be reflected in reports or affect day-to-day operations. However, unbilled services equal lost revenue, inaccurate records, and inconsistent client communication.

Automated charge capture built into modern veterinary software can help offset losses from missed charges without adding work to anyone’s plate. 

In our recent white paper, the Shepherd team analyzed data from general small and mixed-animal practices to learn about the impact of software choice on profitability. Here’s what we learned about automated charge capture and switching to a cloud-based veterinary practice management system. 

About the data

We analyzed data from 460 veterinary practice pet portals, representing about 90 small animal general practices in the U.S. Our goal was to identify patterns in practice performance by looking closely at three key business indicators:

• Average client transaction (ACT)
• Total revenue
• Number of appointments

Why does charge capture matter for veterinary practices?

Charge capture (or revenue capture) is the process of properly invoicing services, treatments, and products provided to a patient during a visit. In an ideal world, team members would record all services. However, veterinary team members are often busy and can easily forget to add things to the bill.

The chances of missing charges are greater with legacy server-based systems and manual processes. Working within these systems requires teams to rely on memory and handwritten notes. They may also create redundancies and inefficiencies because of separate medical records and billing systems. 

Advantages of cloud-based practice management software

Our research found that practices using software with automated charge capture capabilities, such as Shepherd’s cloud-based system, had better capture rates than those using older systems. While the industry standard is estimated at 90% of charges captured, practices using automation came in at 96.5%. Over time, 6.5% can add up to thousands in revenue, especially for practices with multiple locations.

Additionally, practices using automated systems had these advantages over legacy systems:

• 18.1% increase in average client transaction (ACT) 
• 17.3% higher total revenue
• Fewer client billing disputes

How automated charge capture works

Modern, cloud-based veterinary software systems integrate medical records, treatment logs, and invoicing into one seamless workflow. The software automatically adds items to the invoice when a team member logs a treatment or product in the medical record. For example, entering a blood work or X-ray order would trigger the charge for that service to automatically appear on the patient’s invoice. Automation can be a huge timesaver for surgeries, extensive workups, and hospitalizations that produce lengthy invoices. You can also automatically generate discharge instructions and client education handouts directly from the medical record.

More accurate estimates and reporting

Automated clinical tools like charge capture reduce the need for manual entries that can lead to mistakes. It also ensures estimate accuracy, so clients trust that treatment costs will match their quoted amount. Estimate items can be automatically transferred to the treatment plan, and from there to the invoice, minimizing discrepancies.

Better charge capture can lead to improvements in other areas of veterinary practice management, including:

• Efficient financial reporting — Veterinary practices can track revenue and performance more accurately.
• Accurate medical records and inventory — Billed treatments get automatically recorded in a pet’s medical record and immediately logged for inventory control.
• Strong client relationships — Consistent charging practices and accurate estimates help build trust and set client expectations.

Better revenue capture with Shepherd

Missed charges can affect everything from profitability to the client experience. Our research underscores the value of modern veterinary software with built-in automation for capturing charges accurately and efficiently. To download and read the full white paper, click here. 

As veterinary medicine becomes more complex, the systems supporting your practice should evolve with it. Choosing the right veterinary software is a crucial step toward better revenue capture and long-term financial health. Contact the Shepherd team to schedule a demo and learn how switching to our vet-designed software can help support and grow your practice.