Fran Cole: Consolidation is changing the pet industry | Lifestyles

Fran Cole: Consolidation is changing the pet industry | Lifestyles

Pet owners are facing significant increases in veterinary bills, which can substantially complicate medical decisions they make for their pets and negatively impact their finances. According to the Bureau of Labor Statistics, the price of urban veterinary services rose by 7.9% from February 2023 to February 2024, more than 2 1/2 times higher than the average of all consumer items. Over the last decade veterinary care costs have soared over 60%. Because huge veterinary costs are often unplanned for incidents or illnesses, pet owners without pet insurance can face daunting bills. Putting off preventative veterinary care often results in serious health issues being discovered later, resulting in higher treatment costs. A 2023 Forbes Advisor poll found that 63% of pet owners said inflation had made it harder to pay for unexpected vet expenses.

Experts cite a number of reasons for the increased costs, including a shortage of veterinarians and technicians, increased labor and diagnostic test costs and practice consolidation and ownership of practices by large public corporations and private equity firms. Currently, a third of the nation’s 30,000 veterinary clinics are owned by large chains, who have seen huge profit opportunities for investors. According to John Volke of Brakke Consulting Firm, a veterinary management consulting firm, 75% of specialty practices, such as emergency and surgery care, are now owned by large corporations. Some private equity chains buy community-based practices without rebranding them, so often consumers are unaware of the ownership change. Consolidation has also increased competition for veterinary staff, which has increased costs for consumers. Because corporations and private equity investors have more resources to purchase clinics from retiring veterinarians, it then becomes more difficult for young veterinarians to take over a practice.

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