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Category: Telemedicine

Leading Digital Pet Health Company Abruptly Shuts Down

July 2, 2023 Admin

Fuzzy Pet Health (Fuzzy), a pet healthcare startup, has abruptly shut down, leaving employees and customers in the lurch according…

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Posted in: Telemedicine, Veterinary

Pet Telehealth Startup Dutch Raises $20M Series A Funding Round

March 3, 2022 Admin

Dutch, a pet telehealth startup, recently ANNOUNCED that it has raised a $20 million Series A funding round led by…

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Posted in: Startups, Telemedicine, Veterinary

Pet Care Platform Wag! to offer Wellness Plans and Virtual Veterinary Care

December 24, 2021 Admin

Wag!, a technology platform that supports dog walking, pet sitting and training services nationwide has recently LAUNCHED a suite of…

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Posted in: Telemedicine, Veterinary

Fuzzy Raises $44 Million in Funding led by Icon Ventures

December 1, 2021 Admin

Fuzzy Pet Health (Fuzzy), a leading digital pet care company, recently ANNOUNCED it has raised $44 million funding round led…

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Posted in: Startups, Telemedicine, Veterinary

Nationwide Launches VetHelpline, New Subscription-Based Telehealth Service for Non-Customers

October 10, 2021 Admin

Nationwide, the nation’s largest pet insurance provider, has recently LAUNCHED vethelpline by Nationwide which is a standalone subscription service that…

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Posted in: Insurance, Telemedicine

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

Chewy Expands its Telehealth Service Adds Video Consultations, New Extended Hours

May 23, 2021 Admin

Chewy, a leading e-commerce company that sells pet products, supplies, and prescriptions recently ANNOUNCED new features for its telehealth service,…

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Posted in: CHEWY, Telemedicine

Chewy Launches New Telehealth Service for Pets

October 28, 2020 Admin

Chewy, a leading e-commerce company for the pet care industry which sells pet food, supplies and medications recently LAUNCHED a…

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Posted in: CHEWY, Telemedicine

Airvet Raises $14 Million to Bring Virtual Care to Pet Owners

August 2, 2020 Admin

Airvet, a popular veterinary telemedicine service, recently ANNOUNCED the close of a $14 MILLION Series A funding round led by…

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Posted in: Startups, Telemedicine

Modern Animal Raises $13.5 Million for Veterinary Care Platform

November 1, 2019 Admin

MODERN ANIMAL recently raised a $13.5 million seed round of funding which will enable the company to open it’s first…

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Posted in: Startups, Telemedicine, Veterinary

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RECENT POSTS

  • Consolidators Plan Merger to Create Giant Network of Animal Hospitals September 1, 2024
  • Sen. Elizabeth Warren Targets Private Equity Company for Consolidating Veterinary Sector, Raising Costs August 16, 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 practices in the U.S. are owned by consolidators -- operate larger practices and account for 50% of all client visits. 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 non-veterinary professionals with no experience in the pet medical world. Consolidators require significantly greater revenue to be profitable due to its large infrastructure of managers and support teams -- multiple levels of management. The support center is often located in a different state, far from the individual practices that are owned, operated and controlled by these large corporate entities.
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. A new full market investigation abroad will focus on incentive-based compensation of veterinary professionals.

 

IS INDUSTRY CONSOLIDATION THE ROOT CAUSE OF THE PROBLEM?
In the next decade, less than 10 large corporate groups will own, operate and control 6 out of 10 general practices based on current u.s. trends and abroad -- corporations will own everyone. A consolidated market with many complaints of higher prices and lower quality of care -- planned merger to create giant network of veterinary hospitals. Industry expert says it’s unlikely that the Federal Trade Commission (FTC) would block the merger.

 

AFFORDABILITY CRISIS: VETERINARY CARE PRICES RISING RAPIDLY
Today, the news media reports the cost of vet care has increased 8% in the past year -- historically 3%. Many practices have raised prices 20 to 40% year over year. Insurance companies are seeking premium increases up to 56% -- provider drops coverage for 100,000 pets citing high vet costs. Corporate practices typically offer higher salaries, benefits and signing bonuses to employees -- retention bonus up to $250k to veterinarians.
What's Behind the High Cost of Veterinary Care?

 

IS PRIVATE EQUITY SADDLING VETERINARY SECTOR WITH DEBT?
Since 2017, private equity firms have invested more than $60 billion in the u.s. veterinary sector. Consolidators use high levels of debt to acquire as many hospitals as possible -- "serial acquisitions." 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. Several consolidators each have billions of outstanding debt in a high interest rate environment which makes it harder to cash out their investments -- may jeopardize their ability to navigate a downturn.

 

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 -- increase in upselling to clients. 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. Private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the commission’s radar -- senators urged the FTC and congress to take stronger action against consolidation in the veterinary care industry.
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 3 to 5 years to another consolidator for a substantial profit. 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. Hospital groups typically make 10s of millions of dollars in profit each year -- conflict of values cause burnout and drives workers away from the profession.

 

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