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

News Blog

PetSmart Charities Commits $100M to Make Veterinary Care More Accessible

February 9, 2023 Admin

PetSmart Charities, a leading funder of animal welfare, recently ANNOUNCED a commitment of $100 million over the next five years…

Continue Reading →

Posted in: Affordability, Veterinary

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…

Continue Reading →

Posted in: Medications

Wag! Group Co. Completes Acquisition of Dog Food Advisor for $9 Million

January 8, 2023 Admin

The Wag! Group Co. (Nasdaq: PET), a pet care platform, that offers access to dog walking, pet sitting, and training…

Continue Reading →

Posted in: Pet Food

VetCor Acquires Consolidator with over 150 Practice Locations

November 17, 2022 Admin

VetCor, a leading veterinary consolidator, recently ANNOUNCED it has acquired People, Pets, & Vets (PPV), a consolidator with more than…

Continue Reading →

Posted in: Consolidation, Hospital Groups, PRIVATE EQUITY, Veterinary

CONSOLIDATION: AmeriVet Veterinary Partners Acquires Consolidator with 14 Practice Locations

November 13, 2022 Admin

AmeriVet Veterinary Partners (AmeriVet), a leading consolidator of veterinary practices recently ANNOUNCED that it has acquired Northeast Veterinary Partners, a…

Continue Reading →

Posted in: Consolidation, Hospital Groups, PRIVATE EQUITY, Veterinary

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…

Continue Reading →

Posted in: Insurance, petco

Chewy Expands CarePlus, Announces Another New Partnership With Lemonade Pet Insurance

October 22, 2022 Admin

Chewy, a leading e-commerce retailer of pet products, supplies and prescriptions recently ANNOUNCED its expanding CarePlus which offers pet insurance…

Continue Reading →

Posted in: CHEWY, Insurance

Online Pet Adoption Platform PetPair Raises $1.2M in Pre-Seed Round

October 4, 2022 Admin

PetPair, an online pet adoption platform, recently ANNOUNCED it has closed a $1.1 million pre-seed round for a total of…

Continue Reading →

Posted in: Adoption, Animal Shelters

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

PetSmart Veterinary Services (PVS) To Open First Franchise Hospital Location In Arizona

September 15, 2022 Admin

PetSmart Veterinary Services (PVS) recently ANNOUNCED the opening of its first hospital location this month in Peoria, Arizona. PVS plans…

Continue Reading →

Posted in: FRANCHISE, Hospital Groups, PetSmart, PRIVATE EQUITY, Veterinary

Posts navigation

← Older posts
Newer posts →

RECENT POSTS

  • UK’s Antitrust Watchdog Launches Review into Rising Prices in Veterinary Services Market for Pets September 8, 2023
  • Thrive Pet Healthcare Announces Closure of Emergency Hospital in Brighton, NY August 30, 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 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. Today, approximately 1 out of every 4 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" -- 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 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 decade, a small number of corporate groups (less than ten) will most likely own, operate and control approximately 6 out of every 10 general practices based on current u.s. trends and abroad. 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. Increasing numbers of practices are now corporate owned (requires large support center) and needs significantly greater revenue to be profitable. Corporate practices typically offer higher salaries, benefits and signing bonuses to employees (retention bonuses up to $250k to doctors) -- total payroll expense represents about 51% of gross revenue.

 

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 -- 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. A common strategy for veterinary consolidators (most are owned by private equity firms) is to
increase the cost of care after a private equity acquisition -- studies in human medicine show that private equity takeovers are associated with rising costs and sinking quality of care.
Common Perceptions of Corporate Veterinary Practices

INCREASING TRANSPARENCY IN PRACTICE OWNERSHIP
CARE for Pets™ officially launches VERIFIED,™ the first and only veterinary practice ownership verification tool for the pet care industry. The VERIFIED™ searchable database will enable pet owners to verify the current owner of a corporate-owned veterinary practice -- consolidators often retain the original name and branding after the acquisition.

 

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 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."
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