Skip to content
CARE for Pets logo

CARE for Pets™

Leading Consumer Advocate for Pets
  • Home
  • Veterinary Care
  • Medications
  • Insurance
  • Adopt
  • News Blog
  • About Us

Category: Mars Petcare

VCA Animal Hospitals Opens its First Urgent Care Hospital in Los Angeles, Plans Nationwide Expansion

September 1, 2022 Admin

UPDATED: SEPTEMBER 25, 2022 VCA Animal Hospitals has expanded its veterinary services with the launch of its first urgent care…

Continue Reading →

Posted in: Hospital Groups, Mars Petcare, Veterinary

BluePearl in Phoenix AZ becomes First-ever brick-and-mortar AAHA Accredited End-of-Life Care practice

May 15, 2022 Admin

BluePearl Specialty and Emergency Pet Hospital (BluePearl), one of the largest specialty and emergency veterinary practices in the U.S., recently…

Continue Reading →

Posted in: Mars Petcare, Veterinary

PetSmart Announces Exclusive Partnership with Nom Nom

April 8, 2022 Admin

PetSmart which operates approximately 1,660 pet stores in the United States, Canada and Puerto Rico, recently ANNOUNCED an exclusive partnership…

Continue Reading →

Posted in: Mars Petcare, Pet Food, PetSmart

Pet Obesity Is On The Rise, Banfield Pet Hospital Report

July 1, 2021 Admin

Banfield Pet Hospital (owned by Mars, Incorporated) which operates more than 1,000 general veterinary hospitals in 42 states, Washington D.C.,…

Continue Reading →

Posted in: Mars Petcare

Mars Petcare Launches Mobile App Using Noseprint Recognition Technology to Reunite Lost Dogs

June 13, 2021 Admin

Mars Petcare recently LAUNCHED a beta version of the new NOSEiD mobile app to help reunite lost dogs using first-of-its-kind…

Continue Reading →

Posted in: Lost, Mars Petcare

BluePearl Pet Hospital Enters End-Of-Life Market With Acquisition of PetHospice

December 5, 2020 Admin

BluePearl Specialty and Emergency Pet Hospital which operates a national network of more than 95 specialty and emergency pet hospitals…

Continue Reading →

Posted in: Consolidation, Hospital Groups, In-Home, Mars Petcare

Banfield Pet Hospital Launches 24/7 Access To Pet Health Care Advice With Vet Chat

June 7, 2019 Admin

Banfield Pet Hospital, the largest general veterinary practice in the U.S. (Owned by Mars, Inc.) recently launched VET CHAT, a…

Continue Reading →

Posted in: Mars Petcare

‘Millions’ Of Roaches Plagued Pet Food Production Facility

June 7, 2018 Admin

According to a recent in-depth report by FOOD SAFETY NEWS, ‘Millions’ of roaches plagued maker of Pedigree, IAMS, Cesar, other…

Continue Reading →

Posted in: Mars Petcare, Pet Food

Mars Inc Completes $9.1B Acquisition of VCA Inc

October 1, 2017 Admin

Mars Inc recently announced it’s successful acquisition of VCA Inc which operates over 800 animal hospitals in the U.S. and…

Continue Reading →

Posted in: Consolidation, Hospital Groups, Mars Petcare, Pet Care, Veterinary

Mars Petcare To Acquire Large Veterinary Hospital Group

January 27, 2017 Admin

Mars Incorporated recently announced that they have entered into an agreement to purchase pet healthcare provider VCA INC (NASDAQ: WOOF)…

Continue Reading →

Posted in: Consolidation, Hospital Groups, Mars Petcare, Pet Care, Veterinary

Posts navigation

← Older posts

RECENT POSTS

  • Non-Disparagement Clauses On The Rise In Veterinary Industry March 24, 2023
  • PetSmart Charities Commits $100M to Make Veterinary Care More Accessible February 9, 2023

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
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."
ABOUT US | BETTER CARE FOR PETS™ | TRADEMARKS

Copyright © Watchdog Media Group™
All Rights Reserved 2014-2023

Disclaimer: CARE for Pets™ (CFP™) - Part of the CARE for Animals Network™ (CFAN™), does not guarantee accuracy of displayed data nor endorse or recommend any pet products and services which may also include veterinary practices, veterinarians, pet insurance, and animal welfare organizations.

Copyright © 2023 CARE for Pets™ — Stout theme by GoDaddy