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Category: Medications

Covetrus Pleads Guilty to Criminal Misbranding of Veterinary Prescription Drugs

February 15, 2024 Admin

Covetrus North America LLC, a company based in Dublin, Ohio, which sells veterinary products to customers across the United States,…

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Posted in: Medications, Prescription Management

PetMeds To Acquire Pet Prescription and Supplies Company, PetCareRx

January 22, 2023 Admin

PetMed Express, Inc (PetMeds) (NASDAQ: PETS), an e-commerce provider of pet medications recently ANNOUNCED an agreement to acquire PetCareRx, a…

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Posted in: Medications

Chewy Alleges Diverting Pet Prescription Sales in Lawsuit

October 24, 2021 Admin

Chewy, a leading e-commerce retailer of pet products, supplies and prescriptions, is accusing a software provider and a competing pharmacy…

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Posted in: CHEWY, Medications, Veterinary

PetSmart Partners with Allivet, Launches New Online Pharmacy

October 17, 2021 Admin

PetSmart, a leading pet retailer which operates approximately 1,650 stores in the United States, Canada and Puerto Rico recently ANNOUNCED…

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Posted in: Medications, PetSmart

Online Retailer Chewy Launches New E-commerce Platform for Veterinary Practices

October 3, 2021 Admin

Chewy Inc (Chewy), a leading e-commerce retailer of pet products, supplies and prescriptions recently ANNOUNCED the launch of a new…

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Posted in: CHEWY, Medications, Veterinary

Veterinary Telehealth Provider Vetster Launches New Online Pet Pharmacy

September 28, 2021 Admin

Vetster, a telehealth service which offers 24/7 online veterinary appointments recently ANNOUNCED the launch of VetsterRx, a new online pet…

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Posted in: Medications, Startups, Telemedicine

Pet Pharmacy Startup Mixlab Raises $20 Million Series A Funding Round

September 19, 2021 Admin

Mixlab, a pet pharmacy which focuses on creating custom medications for pets recently ANNOUNCED a $20 Million Series A funding…

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Posted in: Medications, Startups

Pet Health Startup Front Of The Pack Closes $10M Series A Funding Round

August 1, 2021 Admin

FRONT OF THE PACK, a direct-to-consumer (DTC) pet supplement and treat brand recently announced that it has closed a $10…

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Posted in: Medications, Pet Food, Startups

Insurer Nationwide Partners with Walmart on First-of-its-Kind Pet Prescription Program

February 24, 2021 Admin

Nationwide, the first and largest provider of Pet Health Insurance which insures more than 900,000 pets in the United States…

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Posted in: Insurance, Medications, Walmart

Walmart Launches Online Pharmacy for Pets

May 8, 2019 Admin

Walmart recently LAUNCHED their online pet pharmacy for prescription medications at WalmartPetRx.com. Prescriptions are available for dogs, cats, horses and…

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Posted in: Medications, Walmart

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  • Petco CEO Ron Coughlin Steps Down March 15, 2024
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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 -- market share has tripled in the last 6 years. Its largely invisible to most pet owners because consolidators view the corporatization of a practice as a marketing liability. Today, nearly 1 out of 3 general veterinary practices in the U.S. are owned by corporate consolidators -- accounts for 40-50% of all client visits (often own larger practices). Corporate practices will not return to being independently owned again -- irreversible unless consumers push back against industry consolidation.
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 consolidators are led by non-veterinarians -- doctors are more often managed by nonveterinary professionals with no experience in the pet medical world. These corporate entities employ a large infrastructure of managers and support teams and require significantly greater revenue to be profitable.
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" -- how much revenue they bring into the practice. Compensation models for veterinarians consist either of a fixed salary, salary plus commission, or 100% commission (doctor pay up to 25% of sales) -- doctors may feel obligated to see lots of patients in a day. A new worker-owned veterinary cooperative "does not pay any employee based on production."

 

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 decade, less than 10 corporate groups will most likely own, operate and control approximately 6 out of every 10 general practices representing 75% of the total general practice market based on current u.s. trends and abroad -- consolidated market with many complaints of higher prices and lower quality of care. 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 news media reports that the average cost of veterinary care has increased about 10% in the past year. Historically 3% -- highly cited study predicted a 3% annual increase thru 2029. However some practices have not raised prices at all, and others raised prices 20, 30 or 40 percent year over year -- prices change frequently at corporate practices with no notice to clients or staff. Pet insurance companies are seeking double-digit premium increases up to 50% or more. Corporate practices often offer higher salaries, benefits and signing bonuses to employees -- retention bonuses up to $250k to doctors. Labor is the largest cost for veterinary practices -- about 51% of gross sales.

 

IS PRIVATE EQUITY SADDLING VETERINARY SECTOR WITH DEBT?
Since the start of 2017, private equity firms have invested more than $45 billion in the U.S. veterinary sector. Consolidators often use high levels of debt to acquire as many hospitals as possible -- "serial acquisitions." The sale price of hospitals has skyrocketed. The use of financial leverage and valuation arbitrage have caused sale prices to more than double over the past five years -- outbid independent doctors paying 2 or 3 times more. This could jeopardize their ability to navigate a downturn -- rising interest rate environment.

 

FIND THE BEST CARE FOR YOUR PET - COMPANION PLATFORM™
CARE for Pets™ officially launches the Companion Platform™ (COMPANION™) -- a pet health platform to help pet owners find the best possible care for all companion animals.

 

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

COMMON PERCEPTIONS ABOUT CORPORATE PRACTICES
There is a common perception in the pet care industry that many corporate-owned veterinary practices prioritize profits over patient care -- doctors feel more pressure to generate revenue and see more clients per shift. A common strategy for consolidators is to increase revenue by raising prices after an acquisition -- maximizing profitability. Studies in human medicine show that private equity takeovers are linked to rising costs for patients and sinking quality of care. Understanding private equity investments in human medicine will provide insight into its potential impact to veterinary medicine.
Common Perceptions of Corporate Veterinary Practices

WHO OWNS, OPERATES AND CONTROLS THE PRACTICE?
CARE for Pets™ officially launches VERIFIED,™ the first and only veterinary practice ownership verification online tool for the pet care industry -- do you know who owns your vet? Consolidators buying hospitals often require the selling doctor to stay at the veterinary practice for 1 to 4 years after the purchase and may fail to disclose change of ownership to pet owners -- advertising is ethical when there are no false, deceptive, or misleading statements or claims.

 

HEIGHTENED SCRUTINY OF PRIVATE EQUITY M&A DEALS
Today, 3 out of 4 specialty and emergency hospitals in the U.S. are owned by corporate consolidators -- state legislator asks Federal Trade Commission (FTC) to scrutinize closure of emergency hospital. The FTC says "private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the commission’s radar" -- may reduce competition within a consolidated local market.
FTC Intervenes PE Acquisition Citing Antitrust Concerns

 

EXIT-DRIVEN STRATEGY: BUYING UP HOSPITALS TO SELL
Roll-ups, a common strategy for consolidators, buys many veterinary practices and combines them into a larger organization to obtain a higher valuation -- grow rapidly. The entity is typically resold within a short-term investment horizon of 3 to 5 years to another corporate consolidator for a substantial profit -- process is repeated until there are no more larger independent practices left to acquire. Hospital groups sell for 100s of millions of dollars -- many times over $1 billion.
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 -- stifle public debate about the effects of rapid veterinary consolidation.
Common Employee Complaints of Veterinary Consolidators

 

ARE CONSOLIDATORS EXACERBATING VET SHORTAGE?
First-of-its-Kind study reveals that veterinarians working in corporate practices reported feeling more pressure than those in private practice to generate revenue and see more clients per shift -- doctors sometimes dread or fear when they learn that their hospital may be sold to a large corporation. There's a tremendous mismatch between employees' purpose and consolidators' purpose -- conflict of values cause burnout and drives workers away from the profession.

 

ACCELERATE POSITIVE CHANGE IN PET CARE INDUSTRY
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