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Category: petco

Petco CEO Ron Coughlin Steps Down

March 15, 2024 Admin

The Petco Health and Wellness Company, Inc. (Nasdaq: WOOF) on Wednesday, announced that Ron Coughlin has stepped down as Petco’s…

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Posted in: petco

Petco Announces New Partnership with Nationwide, The Country’s Largest Pet Insurer

November 1, 2022 Admin

The Petco Health and Wellness Company, Inc. (Petco) recently ANNOUNCED a new partnership with Nationwide, the largest pet insurer in…

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Posted in: Insurance, petco

Petco to Acquire Remaining Stake in Joint Venture with Thrive Pet Healthcare

March 7, 2022 Admin

The Petco Health and Wellness Company, Inc. (Nasdaq: WOOF) recently ANNOUNCED that they have entered into a definitive agreement to…

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Posted in: Consolidation, petco, Thrive Pet Healthcare, Veterinary

Petco Partners with Klarna to offer ‘Buy Now, Pay Later’ Point-of-Sale Installment Loans

September 6, 2021 Admin

The Petco Health and Wellness Company, Inc. (Petco) recently ANNOUNCED that they are partnering with Klarna (a global retail bank,…

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Posted in: petco

Petco Love Launches The First National Database Using Pet-Facial Recognition Technology To Reunite Lost Pets

May 12, 2021 Admin

Petco Love (formerly the Petco Foundation), a national nonprofit animal welfare organization has recently LAUNCHED “Petco Love Lost” to help…

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Posted in: Lost, petco

Petco Partners with DoorDash for Same-Day Delivery of Pet Supplies Nationwide

December 13, 2020 Admin

PETCO which operates more than 1,500 pet store locations across the U.S., Mexico and Puerto Rico recently ANNOUNCED that it…

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Posted in: petco

Petco To Close Online Retailer Drs. Foster and Smith

February 3, 2019 Admin

Petco recently ANNOUNCED that it will close online pet product retailer Drs. Foster and Smith (DFS) on February 12, 2019…

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Posted in: Medications, petco

Petco Becomes First Major Pet Store To Stop Selling Dog, Cat Food with Artificial Ingredients

November 22, 2018 Admin

Petco which operates approximately 1,500 pet store locations in the U.S., Mexico and Puerto Rico recently ANNOUNCED it will stop…

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Posted in: Pet Food, petco

PetCoach: Petco Launches New Concept Store

July 21, 2018 Admin

Petco recently ANNOUNCED the launch of their first PetCoach store which is now open in San Marcos, California. According to…

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Posted in: petco, Veterinary

Petco To Host In-Store Kitchens Featuring Human-Grade Food For Dogs

June 1, 2018 Admin

Petco recently announced it plans to construct JustFoodForDogs branded exhibition kitchens and pantries in hundreds of its stores according to…

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Posted in: Pet Food, petco

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  • Petco CEO Ron Coughlin Steps Down March 15, 2024
  • Covetrus Pleads Guilty to Criminal Misbranding of Veterinary Prescription Drugs February 15, 2024

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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