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Category: FRANCHISE

PetSmart Veterinary Services (PVS) To Open First Franchise Hospital Location In Arizona

September 15, 2022 Admin

PetSmart Veterinary Services (PVS) recently ANNOUNCED the opening of its first hospital location this month in Peoria, Arizona. PVS plans…

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Posted in: FRANCHISE, Hospital Groups, PetSmart, PRIVATE EQUITY, Veterinary

PetSmart to offer In-Store Practice Franchise to ‘Independent’ Veterinarians

July 28, 2022 Admin

UPDATED: SEPTEMBER 16, 2022 PetSmart which operates approximately 1,660 pet stores in the U.S., Canada and Puerto Rico has recently…

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Posted in: FRANCHISE, Hospital Groups, PetSmart, PRIVATE EQUITY, Veterinary

Pet Supplies Plus Reaches 600 Store Locations Nationwide

December 20, 2021 Admin

Pet Supplies Plus, a leading pet retail franchise, operates in 36 states now has 600 pet stores open nationwide according…

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Posted in: FRANCHISE

Walk-In Vet Clinic PetWellClinic Signs 16-Unit Deal to open locations in Phoenix

December 5, 2021 Admin

PetWellClinic, a walk-in veterinary clinic franchise, recently SIGNED a 16-unit deal to open veterinary clinics in the Phoenix area. This…

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Posted in: FRANCHISE, Hospital Groups, Veterinary

Walk-In Veterinary Clinic Easyvet Secures $7M Series A Funding Round

November 14, 2021 Admin

Easyvet, a veterinary group committed to offering convenient and affordable walk-in veterinary care, recently ANNOUNCED the close of a $7…

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Posted in: FRANCHISE, Hospital Groups, Startups, Veterinary

RECENT POSTS

  • VetCor Acquires Consolidator with over 150 Practice Locations November 17, 2022
  • CONSOLIDATION: AmeriVet Veterinary Partners Acquires Consolidator with 14 Practice Locations November 13, 2022

THE CORPORATIZATION OF VETERINARY MEDICINE

The acquisition of private-owned animal hospitals by corporate entities such as veterinary consolidators has accelerated over the last few years and is 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?

MANY 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 70% 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 QUALITY OF CARE IMPACTED BY COMMISSION-BASED PAY?
Today, approximately 2 out of 3 full-time associate veterinarians are paid on "production" (commission). 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 and on pet healthcare costs. A new hospital group startup is bucking the trend on commission pay and will compensate doctors "without the pressure of production-based salary."

 

IS PRIVATE EQUITY RAISING HEALTHCARE COSTS FOR PETS?
Private equity (PE) involvement in veterinary medicine (owns many corporate consolidators) has substantially increased in recent years. PE strategy (prioritize short-term profits) is to consolidate the pet care industry through practice acquisitions in order to enhance value and drive higher earnings. In human medicine, raising prices at hospitals has been a common strategy after a private equity acquisition. Current trends in human medicine indicate that pet healthcare costs could potentially significantly increase due to private equity ownership of veterinary practices.
How Private Equity is Impacting Human Medicine

 

IS INDUSTRY CONSOLIDATION THE ROOT CAUSE OF THE PROBLEM?
A new hospital franchise offered by a leading brick-and-mortar retailer "will help many veterinarians who want to own a practice and otherwise couldn’t because of the consolidation within the industry." Within approximately the next decade, the vast majority of animal hospitals will most likely be owned by a select few corporate consolidators.
PetSmart to Offer In-Store Practice Franchise to Veterinarians

 

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.
Is Your 'Local' Animal Hospital Corporate-Owned?

COMMON PERCEPTIONS ABOUT CORPORATE PRACTICES
There is a general perception with in the pet care industry that many corporate-owned veterinary practices prioritize profits, posing a threat to patients and veterinary workers. Many of these big corporations are backed by private equity firms which have a short-term investment time horizon (holding period is typically 3 to 5 years, the length of time between the purchase and sale of its network of hospitals) 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.
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).
Veterinary Practice Consolidation in the Pet Care Industry

ACCELERATE POSITIVE CHANGE IN PET CARE INDUSTRY
As "the internet's most trusted consumer advocate for the pet care industry,"™ CARE for Pets™ "seeks to empower pet owners to effect positive change in the pet care industry in order to provide the best care for your pet."
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