How Corporate Equity Affects Your Vet
Friends and Neighbors,
Helen Olen from The Atlantic recently reported on a growing industry trend: Why Your Vet Bill is So High. Here’s our take on the article!
“Corporations and private-equity funds have been rolling up smaller chains and previously independent practices.”
A significant factor behind recent changes within the veterinary industry is the increasing influence of "Big Vet," fueled by substantial investments from big money investors who have recognized the willingness of modern pet owners to pay for their pets' healthcare.
BLVD Vet: Proudly 100% Veterinarian-Owned & Independent.
According to data from PitchBook, private equity investments in the veterinary sector amounted to a staggering $51.6 billion between 2017 and 2023, with an additional $9.3 billion flowing in during the first four months of 2024 alone. This surge in investment is driven by the perception of the veterinary field as “low-risk, high-reward,” as highlighted in a 2022 report from Capstone Partners. The industry is noted for its high return on investment, making it an attractive target for private equity.
Corporations and private-equity funds have been consolidating independent practices at an unprecedented rate.
As a result, your local veterinary clinic may now be part of a multinational conglomerate that views pet care as a lucrative revenue stream. Veterinary-industry insiders estimate that 25 to 30 percent of practices in the U.S. are now under large corporate umbrellas.
Some of the effects of this private equity takeover are:
The number of recommended procedures and test significantly increases
Access to new equipment and medications decreases
Medical errors become more frequent
Price drastically increases
Most corporate-owned veterinary practices retain their original names, giving consumers the illusion of local ownership. In reality, fewer than 15 percent of these practices display their corporate brand identity. This lack of transparency leaves many pet owners unaware that their trusted local vet is part of a larger corporate entity.
A study published in the Journal of the American Veterinary Medical Association revealed that veterinarians employed by large corporations report experiencing more pressure to generate revenue. Conversely, those working in independent practices reported higher levels of job satisfaction, particularly their ability to acquire new equipment and medications.
We are proud to continue to operate as an independent family of clinics. All of our decisions are made by veterinarians to ensure the best possible care for your pets. We understand that maintaining happy and supported teams is a big part of that, as well! We look forward to being a part of our local communities for years to come.
Sincerely,
The BLVD Team