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The Market for Veterinary Education

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The Market for Veterinary Education 2018 AVMA & AAVMC Report on THE MARKET FOR VETERINARY EDUCATION 2 2018 AVMA & AAVMC REPORT on THE MARKET FOR VETERINARY EDUCATION 2018 AVMA & AAVMC Report on THE MARKET FOR VETERINARY EDUCATION Veterinary Economics Division American Veterinary Medical Association October 2018 Principal Contributors Bridgette Bain, PhD Charlotte Hansen, MS AVMA Veterinary Economics Division AVMA Veterinary Economics Division Associate Director of Analytics Statistical Analyst Matthew Salois, PhD Barbara Dutton AVMA Director of Veterinary Economics Marketing & Communications Frederic Ouedraogo, PhD Senior Content Writer AVMA Veterinary Economics Division Assistant Director of Economics 2018 AVMA & AAVMC REPORT on THE MARKET FOR VETERINARY EDUCATION 3 CONTENTS 6 SUMMARY 36 NEW VETERINARIAN DEBT 6 How much? 44 Factors Aff ecting Debt of New Veterinarians 6 After graduation 46 NEW VETERINARIAN DEBT-TO-INCOME RATIO 7 Financial rewards 48 Factors Signifi cant in Explaining the 7 Debt for the degree Debt-to-Income Ratio 8 INTRODUCTION 51 Debt-to-Income Ratio Projections 12 THE APPLICANT POOL FOR 52 DEBT AND INCOME OF THE 2017 VETERINARY COLLEGES GRADUATING CLASS 13 Demand for Veterinary College Seats 62 Regional Exchanges and State–to-State Arrangements 14 Applicant-to-Seat Ratio 64 IMPROVING THE DEBT-TO-INCOME RATIO 16 Veterinary Colleges Supply of Seats 65 Historical Perspective 19 The Applicants’ Estimate of the DVM Debt 66 Setting a New Target 21 The 2017 Graduating Class 72 FOREIGN GRADUATES 22 DESCRIPTIVE STATISTICS FOR GRADUATES 76 DISCUSSION 28 NEW VETERINARIAN INCOMES 77 REFERENCES 33 Factors Aff ecting Incomes of New Veterinarians 77 APPENDIX LIST OF TABLES Table 1: Mean GPA for Accepted Students . .15 Table 2: Response Rate by Veterinary College 2017 . .21 Table 3: Factors Aff ecting Starting Salaries of New Veterinarians . 34 Table 4: The Distribution of Students with More than $320,000 DVM Debt by College . 39 Table 5: Factors Aff ecting Debt of New Veterinarians . 45 Table 6: Factors Aff ecting the Debt-to-Income Ratio. 49 Table 7: Cost of Living Census . 58 Table 8: Number of Graduates, Post–Graduation Plans and Mean Debt and Income by School, 2017 . 62 Table 9: Debt-to-Income Ratio by School 2017, Full-Time Only . 66 Table 10: Debt-to-Income Ratio by School 2017, ALL Graduates . 67 Table 11: Total Cost-to-Income Ratio by School, 2017 . 68 Table 12: Total Cost plus Interest-to-Income Ratio by School, 2017 . 69 Table 13: Debt-to-Cost and Debt-to-Cost plus Interest by School, 2017 . 70 Table 14: Debt Below and Above Total Cost plus Interest by School, 2017 . .71 Table 15: Clinical Competencies, Expectations and Experience by School . 78 4 2018 AVMA & AAVMC REPORT on THE MARKET FOR VETERINARY EDUCATION LIST OF FIGURES Figure 1: Regions of the United States . 10 Figure 28: Mean DVM Debt, Public Practice . .40 Figure 2: AAVMC Veterinary School Applicant Figures . 13 Figure 29: Mean Starting Salaries & Debt of New Veterinarians .41 Figure 3: Applicant Demand, 2015, 2016 & 2017 . 14 Figure 30: Mean Debt by Gender . 41 Figure 4: VMCAS Applicants and First-Year Seat, U.S. Figure 31: U.S. Veterinary Colleges Tuition and Fees . .42 14 and International Institutions . Figure 32: Resident and Non-Resident Debt . .43 Figure 5: 16 U.S. Veterinary Graduates, All Sources . Figure 33: Debt of All Students vs. Only Students Figure 6: Supply of Veterinary Education with Non-Zero Debt . .43 17 Tuition & Fees and Total Cost 2017 . Figure 34: New Veterinarians with No DVM Debt . .44 Figure 7: Supply and Demand for Veterinary Education, Figure 35: Real Indexed DVM Debt & Unweighted Debt . .44 2016 & 2017 . 18 Figure 36: Debt-to-Income Ratio Measures . .47 Figure 8: Supply of Veterinary Education Cost for 2017 Grads . 18 Figure 37: Debt-to-Income Ratio by Post-Graduate Plans . .47 Figure 9: Applicants' Estimate vs. Actual Debt Load of 2016 Graduates . 19 Figure 38: Debt and Income: Graduates of U.S. Colleges with Full-Time Employment . 51 Figure 10: DVM Graduates Receiving Off ers from Jobs or Advanced Education . .23 Figure 39: Debt and Income: Graduates of U.S. Colleges with Full-Time Employment, Historic and Projections . 51 Figure 11: Distribution of New Veterinarians . .23 Figure 40: Distribution of Debt, 2017 . .53 Figure 12: Distribution of New Veterinarians, Private Practice .24 Figure 41: Distribution of Starting Salary, 2017 . .53 Figure 13: Distribution of New Veterinarians, Public Practice . .25 Figure 42: Salaries 2015 Grads One Year Out . .54 Figure 14: Distribution of New Veterinarians Private, Public Practice and Internships . .25 Figure 43: Distribution of Debt-to-Income Ratio, 2017 . .55 Figure 15: Species Focus of Internship . .26 Figure 44: Debt and Income of 2017 Graduating Class . .55 Figure 16: Distribution of New Veterinarians in Figure 45: Distribution of Debt and Income of Advanced Education . .26 2015 Grads One Year Out. .56 Figure 17: Mean Starting Salaries of New Veterinarians . .29 Figure 46: 2017 Mean Reported Debt by School . .56 Figure 18: Distribution of Starting Salaries for Figure 47: Mean DVM Debt over Discount Tuition New Veterinarians . .29 by School, 2017 . .57 Figure 19: Mean Starting Salaries, Private Practice . .30 Figure 48: Mean DVM Debt over Non Discount Tuition by School, 2017 . .58 Figure 20: Mean Starting Salaries, Public Practice . 31 Figure 49: Mean DVM Debt over Discount Tuition by Figure 21: 31 Mean Starting Salaries, Advanced Education . School and Cost of Living, 2017 . 60 Figure 22: Indexed Real Income & Nominal Income Figure 50: Mean Debt over Non-Discount Tuition by 32 of New Veterinarians . School and Cost of Living, 2017 . 61 Figure 23: Impact of Real GDP and N on Income . .35 Figure 51: Net Tuition as a Percent of Public Higher Education Figure 24: Debt of New Graduates Mean of All Debt vs. Total Educational Revenue, U.S., FY 1992-2017 . .65 37 Mean of Non-Zero Debt . Figure 52: DVM Debt of Foreign Graduates . .73 Figure 25: Diff erence in Mean Debt Between All Graduates Figure 53: Starting Salary of New Graduates . .73 and Only Those with Non-Zero Debt . .37 Figure 54: Distribution of DIR of 2017 Foreign Grads . .74 Figure 26: DVM Debt by Post-Graduate Plans . .38 Figure 55: Mean and Median Debt of 2017 Graduates Figure 27: 39 Mean DVM Debt, Private Practice . with Non-Zero Debt . .75 2018 AVMA & AAVMC REPORT on THE MARKET FOR VETERINARY EDUCATION 5 SUMMARY As the preceding Table of Contents suggests, this latest look offers answers to questions about the demand for veterinary by the AVMA Economics Division at the market for veterinary education, including how the demand is affected by the education explores topics concerning the supply of and demand price of such an education. for “seats” in schools of veterinary medicine, as well as looks at Although in 2014 more than half of applicants were willing to pay the group of students that recently occupied those seats. up to $150,000 for a veterinary education, in 2015 and 2016, 37.1 Through a collaboration with the Association of American percent and 40.2 percent of applicants, respectively, were willing Veterinary Medical Colleges (AAVMC), AVMA gathers applicant to go to that level. New data reveal that in 2017 only slightly more information from the Veterinary Medical College Application than a quarter (27 percent) of applicants were willing to do so. System (VMCAS) and from the veterinary colleges data on Analysis finds the applicant-to-seat ratio over four years showing tuition, fees and estimated living expenses. a modest increase, from 1.6 in 2015 to 1.8 for 2018 applicants. Trends associated with the careers and finances of new In 2016 6,667 applicants vied for 4,039 available seats, yielding veterinarians are examined in the 2018 AVMA & AAVMC Report an applicant-to-seat ratio of 1.65; in 2017 there were 7,076 on the Market for Veterinary Education, with a critical focus on applicants and 4,126 available seats, producing a 1.72 applicant- the debt situation that figures so prominently in scholastic fields to-seat ratio. In 2017, there were 7,507 applicants seeking some across our society, and which has certainly been an acute 4,200 seats for the Fall 2018 semester, equating to an applicant- concern within the veterinary profession. to-seat ratio of 1.78. Reaching back into the “supply chain” that represents the process The survey data finds that what 2017 applicants (2021 by which aspiring veterinarians are transformed into practicing graduates) indicated they were willing to pay for a seat at a professionals, the analysis rendered begins with observations veterinary college is much less that the actual cost of the seats. of the applicant pool – those seeking admittance to the AVMA- And debt levels suggest that there is a disconnect between accredited domestic and foreign schools of veterinary medicine. what applicants report as their willingness to pay and what Looking at the pipeline to the schools offers insight into how the they end up paying. supply is being developed – in response to perceived demand, Currently, it is estimated that there are slightly more than 4,000 or otherwise. veterinary college seats per year available to U.S. students. Apparently, that pipeline has become pretty well populated: U.S. graduates in 2017 encountered tuition and fees ranging The report’s analysis of applicant volumes finds the number of from just over $79,000 to more than $300,000 for four years applicants in 2017 and 2018 on an upswing, with 7,076 applicants of matriculation through the DVM program. The most affordable in 2017, and 7,507 applicants vying for a 2018 seat – the highest seats? Those at Purdue available on a discounted tuition basis. number of applicants in more than 40 years, and a continuation Students paying non-discount tuition rates at The Ohio State of an ascending trend since what 2015 figures reflected.
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