Understanding Production Pay in Veterinary Contracts

For many veterinarians, compensation doesn’t end with a base salary. Production pay—often referred to as “pro-sal”—is one of the most common and complex parts of veterinary contracts. While it can offer high earnings, it also introduces risk if not fully understood.

What Is Veterinary Production Pay?

Production pay ties part of your compensation to the revenue you generate. For example, a veterinarian might receive a base salary of $100,000 plus 23–25% of production above a certain threshold. This can be appealing, especially for high caseload practices, but it comes with key considerations.

Why It Matters for Associates and Specialists

• Upside Potential: In busy practices, production pay can significantly increase total compensation.

• Downside Risk: If caseloads drop, or if expenses (like discounts or write-offs) are excluded from production calculations, earnings may fall short.

• Transparency Issues: How “production” is calculated varies—gross charges vs. collected revenue, inclusion of lab work, adjustments for refunds—all can change your paycheck.

  
  

Negotiation Points to Watch

1. Rate: Typical production percentages are 20–25%.

2. Base Salary vs. Draw: Is the base guaranteed, or is it a draw against future production?

3. Adjustments: Are refunds, discounts, or unpaid invoices deducted from your production totals?

4. Specialist Considerations: Specialists may see higher production thresholds but also higher earning potential.

   
   

Key Takeaway

Production pay can reward veterinarians for their hard work, but without clear contract language, it can also create frustration and financial instability. Always review the details before signing.

At Roasa Law, we’ve reviewed thousands of veterinary contracts and can help you evaluate whether a production model benefits you—or the practice more.