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Category: Adoption

Online Pet Adoption Platform PetPair Raises $1.2M in Pre-Seed Round

October 4, 2022 Admin

PetPair, an online pet adoption platform, recently ANNOUNCED it has closed a $1.1 million pre-seed round for a total of…

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Posted in: Adoption, Animal Shelters

New Data Shows Increase in Number of Dogs and Cats Killed in U.S. Animal Shelters for First Time in 5 Years

June 11, 2022 Admin

Best Friends Animal Society, a leading animal welfare organization that promotes pet adoption, no-kill animal rescue, and spay-and-neuter, recently RELEASED…

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Posted in: Adoption, Animal Shelters

San Jose Animal Care Center Allegedly Kept Dogs And Cats In Dirty Kennels

August 10, 2019 Admin

Videos and photos taken this spring by a former volunteer at the SAN JOSE ANIMAL CARE CENTER (approximately 18,000 animals…

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Posted in: Adoption, Animal Shelters

$1 Million Petco Foundation Grant Allegedly Misspent By Animal Care and Control Team of Philadelphia

January 15, 2019 Admin

The City Of Philadelphia Office Of The Controller recently RELEASED a review of Animal Care Control Team Philly’s (ACCT) management…

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Posted in: Adoption, Animal Shelters

California Becomes First U.S. State To Ban Pet Stores From Selling Commercially Bred Animals

January 1, 2019 Admin

The state of California has become the 1st U.S state to ban pet retail stores from selling dogs, cats or…

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Posted in: Adoption, Animal Shelters, Animal Welfare

Investigation Spotlights Rescue Groups Buying Dogs At Breeder Auctions

May 19, 2018 Admin

A recent investigation by THE WASHINGTON POST spotlights the practice of Dog rescuers buying dogs from breeders at commercial auctions.…

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Posted in: Adoption, Animal Shelters

California May Become First U.S. State To Ban Stores That Sell Commercially Bred Pets

June 27, 2017 Admin

California could become the first state in the nation to ban pet stores from selling commercially bred pets which includes…

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Posted in: Adoption, Animal Shelters, Animal Welfare

National Study Shows Decrease in Euthanasia of Companion Animals in U.S. Shelters

April 2, 2017 Admin

Recently released data from a national animal shelter study by the American Society for the Prevention of Cruelty to Animals…

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Posted in: Adoption, Animal Shelters

New Pet Adoption Website Enables Home-To-Home Adoptions

February 7, 2017 Admin

A new pet adoption website was recently launched in late 2016 which seeks to keep pets out of animal shelters…

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Posted in: Adoption

Low Complication Rate Claims Under Scrutiny At Maricopa County’s Animal Shelter

May 20, 2015 Admin

A recent investigation by The Arizona Republic on the nation’s second largest public animal shelter reveals potential flaws on reported…

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Posted in: Adoption, Animal Shelters, Pet Care, Veterinary

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THE CORPORATIZATION OF VETERINARY MEDICINE

The acquisition of private-owned animal hospitals by corporate entities such as veterinary consolidators has grown exponentially since 2011, and accelerated in 2017. Its largely invisible to most pet owners because consolidators view the corporatization of a practice as a marketing liability. This has potentially serious implications for competition, pet healthcare costs and may worsen the labor shortage of veterinarians and veterinary technicians.
Are Consolidators Helping or Hurting Veterinary Medicine?

MAJORITY OF CORPORATE PRACTICES LED BY NON-VETERINARIANS
Study conducted by CARE for Pets™ reveals that the majority of veterinary consolidators are led by non-veterinarians. These corporate entities employ a large infrastructure of managers and support teams and require significantly greater revenue to be profitable. Today, approximately 1 out of every 4 (based on recent trends, may reach more than 60% within the next 10 years) general veterinary practices in the U.S. are owned by corporate consolidators.
CEOs of Veterinary Consolidators and Hospital Groups

 

IS PATIENT CARE IMPACTED BY COMMISSION-BASED PAY?
Today, approximately 2 out of 3 full-time associate veterinarians are paid on 'production'. Compensation models for veterinarians consist either of a fixed salary, salary plus commission, or 100% commission. This has potentially serious implications on the quality of veterinary medicine, healthcare costs and on the chronic labor shortage of veterinarians. A new hospital group startup is bucking the trend on commission pay and will compensate doctors "without the pressure of production-based salary."

 

IS INDUSTRY CONSOLIDATION THE ROOT CAUSE OF THE PROBLEM?
A new hospital franchise offered by a leading brick-and-mortar retailer says it "will help many veterinarians who want to own a practice and otherwise couldn’t because of the consolidation within the industry." Over the next ten years, large corporations (less than ten) will most likely own, operate and control approximately 6 out of every 10 general practices. The pace of consolidation will slowdown as veterinary consolidators buy each other (very few independent practices left to acquire).
PetSmart to Offer In-Store Practice Franchise to Veterinarians

 

AFFORDABILITY CRISIS: VETERINARY CARE PRICES RISING RAPIDLY
Today, the average cost of veterinary care is rising approximately 10% per year (historically 3% -- a highly cited study predicted a 3% annual increase thru 2029). However, some practices have increased prices up to 20% or more. As the industry consolidates, an increasing number of practices are corporate-owned and require significantly greater revenue to be profitable (obtain a higher valuation for resale). Corporate practices employ a large infrastructure of managers and support teams, typically offer higher salaries, benefits and signing bonuses (big retention bonuses up to $250k to doctors) to its employees.

 

IS PRIVATE EQUITY SADDLING VETERINARY SECTOR WITH DEBT?
Since the start of 2017, it's estimated that private equity firms have invested more than $45 billion in the U.S. veterinary sector. Private equity firms often use significant amounts of debt financing (leveraged buyouts) to buy as many animal hospitals as quickly as possible (roll-up strategy). The sale price of practices has skyrocketed (the use of financial leverage and arbitrage have enabled prices to more than double) over the past five years. During an economic crisis, such as a recession, this could potentially jeopardize their ability to navigate a downturn.

 

CASE STUDY: Lack of Ownership Transparency in Veterinary Practices

Study conducted by CARE for Pets™ reveals many veterinary consolidators communicate misleading statements about ownership information on their individual practice websites which is most likely to create a false impression to pet owners that the practice is independently owned and locally operated. Most veterinary practices acquired by corporate consolidators often retain their original company name and may purposely avoid corporate ownership identification (faceless corporation).
Is Your 'Local' Animal Hospital Corporate-Owned?

COMMON PERCEPTIONS ABOUT CORPORATE PRACTICES
There is a general perception in the pet care industry that many corporate-owned veterinary practices prioritize profits, posing a threat to patients and workers. Many big corporations are backed by private equity firms which have a short-term investment time horizon (3 to 5 years) that prioritizes generating returns for their investors and may overlook the quality of patient care and the wellbeing of their employees.
Common Perceptions of Corporate Veterinary Practices

LOCAL MATTERS: INTERVIEW WITH PRESIDENT OF IVPA
CARE for Pets™ interviews the President of the Independent Veterinary Practitioners Association (IVPA) about the importance, benefits, and value of independently owned & locally operated veterinary practices to pet owners and their companion animals, and to the local community.
Interview with Dr. Bonnie Bragdon of the IVPA

WILL PRIVATE EQUITY FIRMS TAKEOVER PET INDUSTRY?
Today, private equity (PE) firms control thousands of veterinary practices, major pet retailers, pet insurance companies and pet product manufacturers. Other pet care startups are founded and led by former employees of private equity firms and it is not disclosed in a transparent manner. Understanding private equity investments in human medicine will provide insight into its potential impact to the veterinary healthcare system.
Private Equity Investments in Pet Care Industry

HEIGHTENED SCRUTINY OF PRIVATE EQUITY M&A DEALS
Today, approximately 3 out of 4 specialty and emergency clinics in the U.S. are owned by corporate consolidators. The Federal Trade Commission (FTC) says "private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the commission’s radar."
FTC Intervenes PE Acquisition Citing Antitrust Concerns

 

BUYING TO SELL: IRREPARABLE HARM TO PET INDUSTRY?
Roll-ups, a common strategy for consolidators, buys several practices and combines them into a larger organization in order to obtain a higher valuation. The combined entity is resold (short-term investment horizon) to another industry consolidator at a substantial profit and the process repeats. Hospital groups can sell for 100s of millions of dollars (often over $1 billion, and annual earnings can more than double).
Flipping Hospitals Reap Large Profits for Consolidators

CONSOLIDATORS PRIORITIZING PROFITS OVER PATIENTS
Our research shows that common complaints among employees of corporate-owned veterinary practices say their employers prioritize short-term profits -- numerous red flags. Reading company reviews at popular job websites about the corporate consolidator that owns the individual practice can provide greater insight into the company's true priorities, work conditions, culture, and leadership. However, gag clauses are on the rise which may silence doctors and staff.
Common Employee Complaints of Veterinary Consolidators

 

ACCELERATE POSITIVE CHANGE IN PET CARE INDUSTRY
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