Operating a veterinary practice is complex and demanding. Between managing patients, clients, staff, and business operations, profitability is only part of the financial story. Whether you plan to sell your practice one day or simply want to strengthen its long-term financial health, EBITDA is the key metric that buyers, corporate groups, and investors care about most.
What Is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
In simple terms, it’s a measure of your practice’s operating profitability. It strips away financing and accounting decisions to show the true earning potential of the business.
Why does it matter?
- Buyers use EBITDA to determine the value of your practice.
- Veterinary practices are often sold based on a multiple of EBITDA (e.g., 6–10x).
- A small improvement in EBITDA can significantly increase your practice’s market value.
For example:
- If your practice has $500,000 in EBITDA and is valued at 7x, the practice is worth $3.5 million.
- Increase EBITDA by $50,000 through better efficiency and new revenue streams, and the valuation jumps to $3.85 million.
How Telemedicine Improves EBITDA and Financial Health
Telemedicine isn’t just a client convenience tool—it can directly improve both the revenue side and the expense side of your EBITDA equation.
1. Expanding Revenue Opportunities
- Billable virtual visits (wellness check-ins, post-op rechecks, behavior/nutrition consults).
- Chronic disease management programs with regular touchpoints.
- Preventive care plans enhanced with remote monitoring and follow-up.
- Capturing revenue from services that previously went uncompensated (e.g., “quick questions” that were handled informally).
2. Increasing Client Retention and Lifetime Value
- More frequent touchpoints lead to stronger client loyalty.
- Loyal clients spend more on preventive care and stay with your practice longer.
- Higher compliance with treatment and diet plans leads to better patient outcomes and ongoing care revenue.
- Competitive advantage: Practices offering telemedicine differentiate themselves from clinics that don’t, attracting and retaining clients who value convenience, accessibility, and proactive care.
3. Reducing Costs and Improving Efficiency
- Fewer unnecessary in-clinic rechecks, saving staff and doctor time.
- Reduced no-shows and cancellations by offering virtual alternatives.
- More efficient use of exam rooms and schedule capacity.
- Virtual triage reduces time spent on uncompensated phone calls.
4. Enhancing Practice Valuation
Because EBITDA drives valuation, telemedicine contributes in two ways:
- Higher profitability today through new revenue and reduced inefficiency.
- Stronger multiple tomorrow by showing that your practice is modern, scalable, and future-ready. Corporate groups and buyers value practices with diversified revenue streams, client engagement strategies, and operational systems that aren’t overly dependent on one doctor’s time.
A Workable Example: Telemedicine and EBITDA in Action
Let’s say your practice integrates telemedicine for routine follow-ups and consults:
- 10 virtual consults per week at $125 each
- That’s $1,250/week, or about $65,000 per year in new revenue
- Overhead for these visits is lower (no exam room turnover, less staff time), so let’s assume 75% flows to EBITDA
- That means telemedicine contributes roughly $48,750 directly to EBITDA
Now, apply a 7x valuation multiple:
- $48,750 × 7 = $341,250 increase in practice value
And that’s just from 10 virtual visits a week. Scale it to 15 or 20 visits, add structured chronic care plans, QOL assessments or fold in nutritional consults, and the impact compounds quickly.
Telemedicine Valuation Impact at $125/Consult
| Weekly Virtual Consults | Annual Revenue | EBITDA Contribution (75%) | Practice Value Added (7x) |
| 10 | $65,000 | $48,750 | $341,250 |
| 15 | $97,500 | $73,125 | $511,875 |
| 20 | $130,000 | $97,500 | $682,500 |
The Bottom Line
Telemedicine is more than a patient care tool—it’s a financial growth strategy. By increasing revenue, improving efficiency, and boosting client retention, telemedicine directly impacts EBITDA and the overall financial health of your practice. Whether you plan to sell your practice one day or simply want to strengthen its long-term financial position, even small improvements can add hundreds of thousands to your eventual valuation.
For owners looking to stay competitive today and maximize practice value for the future, integrating telemedicine isn’t optional—it’s essential.