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: Thrive Pet Healthcare

Thrive Pet Healthcare appoints new Chief Executive Officer

September 25, 2022 Admin

Thrive Pet Healthcare, a veterinary network with over 350 primary, acute, and specialty hospitals, recently ANNOUNCED the appointment of Odis…

Continue Reading →

Posted in: Hospital Groups, PRIVATE EQUITY, Thrive Pet Healthcare, Veterinary

Customers and Staff Blindsided after Vet Hospital in Oakland, CA Abruptly Closes

April 29, 2022 Admin

Montclair Veterinary Hospital in Oakland, California shut down last week, leaving clients scrambling to find care for their pets according…

Continue Reading →

Posted in: Hospital Groups, PRIVATE EQUITY, Thrive Pet Healthcare, Veterinary

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…

Continue Reading →

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

First Veterinary Practice on East Coast to Unionize, VSES Workers Voted

January 16, 2022 Admin

Workers employed at Veterinary Specialists & Emergency Services (VSES) in Rochester, New York recently voted in favor of representation by…

Continue Reading →

Posted in: Hospital Groups, PRIVATE EQUITY, Thrive Pet Healthcare, UNIONS, Veterinary

Workers at Veterinary Emergency Hospital in Rochester, NY Can Vote to Unionize, NLRB Official Says

December 21, 2021 Admin

UPDATED: January 4, 2022* The National Labor Relations Board (NLRB) recently ANNOUNCED that it will conduct a mail ballot election…

Continue Reading →

Posted in: Hospital Groups, PRIVATE EQUITY, Thrive Pet Healthcare, UNIONS, Veterinary

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