A recent study by CARE for Pets™ has brought to light a concerning trend within the veterinary industry: many corporate consolidators are using misleading statements on their individual practice websites regarding ownership. This tactic creates a false impression for pet owners, leading them to believe their local vet is independently owned and operated when this is often not the case. This raises critical questions about transparency and the core Mission Veterinary Partners should uphold.
The Perception vs. Reality of Corporate Veterinary Care
There’s a growing perception within the pet care community that corporate-owned veterinary practices often prioritize profits over the well-being of animals. Veterinarians working in these environments frequently report feeling increased pressure to generate revenue and see a higher volume of clients daily. This pressure can lead to strategies like price increases and aggressive upselling after a practice is acquired by a consolidator. Alarmingly, parallels can be drawn to human medicine, where studies show that private equity takeovers have been linked to rising patient costs and a decline in the quality of care. Understanding these trends in human healthcare can offer valuable insights into the potential long-term impact on veterinary medicine and the mission veterinary partners should strive for.
Transparency and the Question of Ownership
CARE for Pets™ has launched VERIFIED,™ an online tool designed to bring transparency to veterinary practice ownership. This initiative addresses the issue of consolidators often requiring selling veterinarians to remain at the practice for several years post-sale, sometimes without clearly disclosing the change in ownership to pet owners. Ethical advertising in veterinary medicine hinges on honesty and accuracy, yet the lack of clear ownership disclosure raises ethical questions. Pet owners deserve to know who truly owns, operates, and controls their veterinary practice to make informed decisions about their pet’s care and to ensure the mission veterinary partners is aligned with their values.
Increased Scrutiny of Private Equity in Veterinary Medicine
The consolidation trend is significant: currently, three out of four specialty and emergency veterinary hospitals in the U.S. are owned by corporate consolidators. This rapid consolidation has caught the attention of regulators, with state legislators and senators urging the Federal Trade Commission (FTC) to investigate the impact of private equity in the veterinary care industry. Concerns are mounting that these roll-up strategies, where firms acquire numerous practices to increase market power, may be happening without sufficient oversight. This heightened scrutiny underscores the need to examine whether the mission veterinary partners is being overshadowed by financial motivations.
The Exit Strategy: Profitability Through Acquisition and Resale
A common tactic employed by consolidators is the “roll-up” strategy. This involves acquiring multiple veterinary practices and merging them into a larger entity to inflate its valuation. These consolidated groups are often resold within a short timeframe, typically 3 to 5 years, to another consolidator for substantial profits, sometimes reaching billions of dollars. This “flipping” of hospitals raises questions about the long-term sustainability of such a model and whether it truly serves the best interests of pets, their owners, or the veterinary profession, and if it aligns with the intended mission veterinary partners.
Profit Prioritization and Employee Concerns
Research indicates that employees of corporate-owned veterinary practices often express concerns about their employers prioritizing short-term profits. Online reviews on job websites frequently reveal insights into a consolidator’s culture, work conditions, and leadership, often highlighting a profit-driven approach. The increasing prevalence of gag clauses further complicates the issue, potentially silencing veterinarians and staff from publicly discussing the effects of rapid consolidation. These employee experiences raise serious questions about whether the focus on profit is undermining the core mission veterinary partners and creating unsustainable work environments.
Is Consolidation Worsening the Veterinary Shortage?
A recent study highlighted that veterinarians in corporate practices reported feeling more pressure to generate revenue compared to those in private practice. This pressure, coupled with abrupt hospital closures that leave employees and clients stranded, points to a mismatch between employee purpose and consolidator priorities. The focus on profits may be negatively impacting workplace culture, contributing to burnout and driving professionals away from the veterinary field, potentially exacerbating the existing veterinarian shortage and further deviating from the true mission veterinary partners.
The Endless Pursuit of Profit in Pet Care
Large consolidators generate substantial revenues, often in the hundreds of millions annually, while many of their employees struggle with wages, and pet owners face rising veterinary costs. This dynamic highlights a system where profit maximization appears to be the primary driver. Unless pet owners and veterinary professionals advocate for change, this profit-driven approach may continue to overshadow the fundamental mission veterinary partners should be dedicated to: providing the best possible care for animals.
Accelerating Positive Change in the Pet Care Industry
As a trusted advocate for pet owners, CARE for Pets™ aims to empower individuals to drive positive change within the pet care industry. By increasing awareness and promoting transparency, CARE for Pets™ seeks to ensure that the focus remains on providing the best possible care for all companion animals, realigning the industry with the true mission veterinary partners should embody.
