New Acquisition Nuances

Importantpointsoverview for your first PDP Visit (Usuallyin month 3)

Always reach out to the TMif questions come up around any of the below. The TM should have a summary call or email with you before your first visit to touch-base and provide relevant information. TGwantsyou to be set-up for success!

Site Operations • Employees maintain current pay rates upon joining NVA • Staff work schedules will continue to be set by the Hospital Manager and is not dictated by NVA except to ensure that labor laws are being followed • MDVM and HM may retain current hospital schedule and structure on employee reviews and salary increases; resources are available if they wish to restructure this process; No set companywide policy (see Performance Reviews & Raises for more guidance)

• TG realizes you may support a site in a state other than your “home state”. Please remember that NVA does not dictate site operations; however, if you see anything you feel can be improved or feel is not legal, please let the TM and DLT know so further assessment can be completed.

Site Culture/ HR

• Only 2 site visits may have occurred before your first visit. This had not provided NVA with much visibility to culture at the new location. • Your mentee HM attended a HR Orientation call with their HRBP in month 1 of being with

NVA. Sometimes what was shared is not retained. Make sure they know who their HRBP is and feel comfortable reaching out to them.

• If you encounter any concerning cultural red flags during your new site visit please immediately reach out to the TM and HLT. These could include bullying, harassment, inappropriate language, intimidation, or an unengaged staff. • Remember, labor law varies from state to state and the HRBP should be contacted with any HR related questions or concerns brought up by the HM.

Payroll

• Set-up in ADP completed by Evan Olson and his Transition Payroll Team immediately • Transition Payroll Team and ADP have training calls with HM before 1st payroll • 1st payroll processed with assistance from the NVA Transition Payroll Team • HM completes 2nd payroll w/Transition Payroll Team support.

• It is possible that pre-NVA the HM may not have processed payroll or the site may have contracted out payroll processing services.

• The site should be following the same procedure as you at the time of your first visit.

Payroll is completed with ADP support (via Zoom open hours) or placing a ticket with

PETS@nva.com. • Some states have 2 pay groups. One for JV partners or Doctors and Licensed Technicians and one for staff. Please ask the HM about their pay groups. • If supporting a multi-site new acquisition query about any staff working at more than 1 location. Validate HM is accurately recording labor hours by location. • Ask if HM has any questions about production calculations or any other payroll items.

Health & Ancillary Insurance

• Pre-close each site is paired with a Total Rewards Transition Partner who determines mapping of existing benefits (if the site offers) to NVA plans and to discuss NVA benefits • All locations receive NVA health and ancillary coverage (on occasion there is an exception, but very rare) • Coverages (ancillary & NVA Health) eligible 1st of the month following the site joining

NVA; open enrollment happens in week 1 or 2 of a site joining NVA

• Relevant to you and possibly forgotten by the HM if they have yet to make a hire while with NVA: if there is a new hire once they are added to ADP the benefits team is notified and will send the HM enrollment information. The new employee has 30 days to enroll, and their benefits will be effective the first of the month after 60 days of employment.

IT

• NVA email & remote access for the HM & MDVM setup within 72 hours of site joining NVA • Often not able to scan directly to NVA Profile and Hospital folders until after conversion (8-12 months after close) sometimes need a workaround • Immediate equipment needs are ordered by Transition Manager

• Things to think about on your visit: Does the HM have a good workspace? Do you think they could benefit from any additional technology? Are they computer savvy? Do they struggle with any processes?

Quickbase, IPS, Vendor Accounts, Vetcove

• New sites are set-up with Quickbase access after their IPS training is complete within two weeks of joining NVA • Preferred vendors setup within 1-2 weeks of closing; new accounts emailed to HM • Vetcove access and training are completed in the first month with NVA • Non-preferred vendor changeover supported by Transition Accounting team; can take several weeks

• Is the HM delegating any use of IPS or Vetcove? This could have occurred if the HM felt ready to do so. If so, please connect with the staff who are using the tools and verify their competence and see if they have any questions. • Some HMs may value your input on what they are ordering and from which Vendors but remember that new sites can also be sensitive to these conversations. Ask questions and let the HM drive the conversation.

• SOO and Flash reports available at next distribution after site joins • Budget not usually available immediately, but may be loaded in the SOO • Financials could be “messy” and transition is working with the reports team to identify concerns. BOARD not accurate (not enough data) and login not provided until month 3 post-close • Possible that no prior year data available on any reports, IRR budgets loaded • Understand that Labor spend and Facility & Admin percentages will be unique to each location, and that any changes will be managed over time

• Approach financials from learning perspective rather than an accountability one for the transition period. This is the acclimation to NVA time and we are not looking to implement initiatives or changes right away. • Flash Revenue and SOO Revenue (based off IRR budget goal) are different, reiterate the difference. • Remember: your Mentee may have no prior financial knowledge of the practice and that most practices run on cash accounting versus NVA accrual accounting.

Hospital Policies & Handbook

• Upon joining NVA most Hospital Specific policies will remain intact. Locations may already have a handbook or manual which will continue to be used in their hospital. Within a year after joining NVA new locations will work with People Services to review their handbook and ensure it is state and federally compliant o Uniforms – same ss hospital currently offers o Pet benefits – same as hospital currently offers o Holidays off and PTO request process – same as hospital currently offers o Lunch, rest, break periods – same as hospital currently offers as long as legally compliant (if your mentee is in a state other than your own please ask for guidance from your DLT if questions arise and copy the TM) o Bonuses –changes to the NVA bonus plans and Holiday Bonus structure unless something else was agreed upon as part of their deal (ask TM if questions arise) • PTO/vacation/sick accrual – this will change to an NVA policy and their PTO mapping and set-up in ADP should be complete. If questions come up, please ask the TM.

• NVA Bonus Programs require the consent of JV Partner MDVMs and may not be in place for the site you support. Be cautious here with the HM who may not be aware of the bonus programs if not agreed to. • Do they have updates they wish to make immediately? Ask them to reach out to their

HRBP? • Are there policy red-flags that came up? Please escalate these to the TM. • PTO Harmonization policy – Sites are contacted pre-close and a PTO/Sick/Vacation policy adopted and set-up in ADP. New Policy language is worked on during the transition period so the HLT can update their policy manual and provide new policy to staff.

Marketing

• Transition sites go through a Marketing Onboarding Orientation at Graduation to their home division. If Marketing topics come up (which they often do) please impart

• Remember: It is not mandatory for new sites to implement an NVA website or other NVA marketing practices. An optimization of the site on the internet will be completed for each site after the 4-month transition period has concluded. • If a site is excited about assistance with Marketing we can start the process early with the

Marketing team. Big things that will be implemented are: Birdeye, AllyDVM, and home delivery but these are not pushed during transition.

Recruiting • HMs do have access to Avature and often have made postings for positions by the time of your first visit. They usually are hungry for best practices and assistance in this area (as we all know, recruiting is challenging).

• Note that some HMs will be excited to learn about new recruiting techniques and best practices while others may feel like they know best even though they have been unsuccessful recently with recruiting. As you know, the job market has changed and there is a lot to learn. Reach out to the TM and DLT if you are not comfortable speaking about recruiting.

JV Locations

• JV Partners are sellers that keep some ownership of their practice through a JV ownership percentage. They have additional leadership/ownership with stake in hospital • Staff Incentive Plan Bonus (SIP): need JV partner consent to participate; JV is responsible for their portion of the bonus pay out

• Not every site participates in the SIP program. Please be cautious here. Your TM should inform you if you are going to a JV site or a site is not participating in the bonus program in case SIP questions are asked. • If a seller/JV Partner has questions about their JV distributions, responsibilities, fees etc. please remind them that Rachel Fairbanks is the JV Liaison and have them contact her.

Workshops • Transition Manager will coordinate w/L&D for dates, timing varies

Other Items

• Any community or charity programs the location currently participate in can and should remain in place if they were paid from the hospital operations budget (i.e., if they donate to the local 5K or 4-H club or sponsor a youth softball team please feel free to continue) • If the hospital has an "Angel Fund" or charity pot for use on special cases, they can keep and operate this as well but should make sure they follow proper procedure and talk with their HRBP