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Grooming at PetSmart In The Spotlight After Alleged Dog Deaths

April 7, 2018 Admin

A dog dropped off at a PetSmart has become “the third to die at one of the stores in New…

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Posted in: Grooming, PetSmart

VetIQ Veterinary Clinics To Open In 20 Walmart Locations

March 16, 2018 Admin

PetIQ Inc (PetIQ), a pet health and wellness company recently ANNOUNCED it plans to open TWENTY veterinary clinics over the…

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Posted in: Veterinary, Walmart

PetInsuranceQuotes.com – Petco Acquires Pet Health Insurance Marketplace

March 8, 2018 Admin

Petco, which operate more than 1,500 Petco and Unleashed by Petco locations across the U.S., Mexico and Puerto Rico recently…

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Posted in: Insurance, petco

General Mills To Acquire Blue Buffalo Pet Food For $8B

February 23, 2018 Admin

General Mills, a leading global food company, has reached a deal to acquire Blue Buffalo Pet Products for about $8…

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Posted in: Pet Food

ABC 7 NEWS: Investigation Finds Euthanasia Drug In Dog Food

February 10, 2018 Admin

LAST UPDATED: MONDAY, FEBRUARY 19, 2018. A recent Investigation by ABC 7 News – WJLA of Washington D.C. found traces…

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Posted in: Animal Welfare, Pet Food

PetSmart Fires Groomer After Viral Video of Mishandled Dog

February 3, 2018 Admin

LAST UPDATED: THURSDAY, MARCH 1, 2018 A groomer at a PetSmart in Katy, Texas has been fired after a video…

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Posted in: Animal Welfare, Grooming, PetSmart

The Pet Vet: Petco Expands In-Store Veterinary Hospitals With Second Operator

January 20, 2018 Admin

Petco, a leading pet specialty retailer, recently announced it’s expansion of additional in-store veterinary hospitals with a second veterinary operator.…

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Posted in: petco, Veterinary

PetIQ To Acquire Leading Veterinary Provider VIP Petcare For $220M

January 8, 2018 Admin

PetIQ Inc (PetIQ), a pet health and wellness company recently announced it has entered into a definitive agreement to acquire…

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Posted in: Medications, Veterinary

Fuzzy Pet Health: Subscription-Based Pet Healthcare Company Raises $4.5M

December 24, 2017 Admin

Fuzzy Pet Health, the subscription-based pet healthcare company recently announced the close of $4.5M in seed round financing. The company’s…

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Posted in: In-Home, Veterinary

PetSmart Launches Online-Only Pet Pharmacy

December 2, 2017 Admin

PetSmart which operates more than 1,500 pet stores in the U.S., Canada and Puerto Rico recently launched PetSmart Pharmacy, a…

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Posted in: Medications, PetSmart

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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 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 that are highly incentivized. The support center is often located in a different state, far from its individual practices -- support staff often lack industry experience.
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 -- reaching at least 70 to 80% without opposition. A consolidated market with many complaints of higher prices and lower quality of care. Major consolidators plan merger to create giant network of more than 730 veterinary hospitals -- industry expert says it’s unlikely that the Federal Trade Commission would block the merger.

 

AFFORDABILITY CRISIS: VETERINARY CARE PRICES RISING RAPIDLY
Today, the news media reports cost of vet care increased 8% in past year -- historically 3%. Many practices raised prices 20 to 40% -- veterinary visits have declined year-over-year since 2022, while pet ownership is increasing. Insurance companies seek premium increases up to 56% -- provider drops coverage for 100,000 pets citing high vet costs. Corporations offer higher salaries, benefits and signing bonuses -- retention bonus up to $250k, to avoid the high turnover of doctors.
What's Behind the High Cost of Veterinary Care?

 

IS PRIVATE EQUITY SADDLING VETERINARY SECTOR WITH DEBT?
Since 2017, private equity firms invested more than $60 billion in the veterinary sector -- serial acquisitions. The use of debt financing and arbitrage caused sale prices of vet practices to more than double -- outbid independent doctors. Several larger consolidators have billions of dollars in outstanding debt.

 

THE VETERINARY HEALTHCARE SYSTEM IS UNDER-REGULATED
Study reveals 2 out of 3 independent practices sold are acquired by consolidators. Consolidation continues unabated with minimal regulatory scrutiny. In one of the most concentrated markets, UK competition watchdog proposes sweeping reforms – 6 consolidators own more than 60% of all general practices.

 

PETS.CARE LAUNCHES COMMUNITY PLATFORMS
The BETTER™ and LIFE™ platform, operated by CARE for Pets,™ enables both pet owners and veterinary professionals to share their knowledge and advocate for positive change -- help companion animals live their best lives.

 

PETS.CARE OFFICIALLY LAUNCHES THE COMPANION PLATFORM™
The COMPANION Platform,™ is the internet’s first and only practice ownership search engine. Consolidators often boast on their individual practice websites that their hospital has been part of the community for decades, and fail to disclose any recent changes in ownership to pet owners.

 

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 post-sale and may fail to disclose change of ownership to pet owners -- "golden handcuffs." 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. There is a large mismatch between employees' purpose and consolidators -- employees and clients blindsided by abrupt closure of hospital. Consolidators primary focus on profits is negatively impacting the workplace culture -- cause burnout and drives workers away from the profession.

 

CONSOLIDATORS ENDLESS PURSUIT OF PROFITS
Large consolidators often make hundreds of millions of dollars a year while many of its employees struggle to earn a livable wage and owners deal with high vet bills -- consolidator launches sale process. The prioritization of profits will continue indefinitely unless workers and consumers pushback.

 

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 all companion animals.
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