Evolution in Veterinary Practice: Cause for Concern?
James Herriot, the legendary kindly Yorkshire vet known for coming to animals’ aid 24/7 and accepting only tea or homemade cake as payment, is long gone; even more troubling is the prospect that modern traditional independent veterinary practices in the UK may soon go away altogether.
Large corporate franchise groups are becoming more prevalent in the veterinary industry and pet services, including food and medicines for pets; something which is typical in America. But is this change beneficial for both pet owners and our furry companions?
It isn’t new; forty years ago when I worked in a veterinary hospital in North London, local practices were consolidating into multi-practices to create more of an absence of competition and freedom of choice for owners; those wishing to find cheaper prices or better service were forced to transport their animals long distances for it. Today in some places this trend persists while large companies purchase or franchise such practices to form even bigger monopolies.
Should we be concerned by big business’s takeover of the veterinary profession?
CVS Group plc and Pets at Home are two of the biggest operators in the UK and are expanding rapidly, each competing to become the biggest veterinary services provider. While this may benefit investors and the economy alike, animals may suffer as they race towards profits.
CVS rates itself as the largest provider, yet is likely lesser known than Pets at Home. At the end of 2017, CVS had over 460 veterinary practices, 4 laboratories, 7 pet crematoriums, 1,270 veterinarians, over 1,800 nurses, 31 pathologist as well as its online marketing company Animed which sells drugs, pet foods and accessories with its turnover reaching PS272 Million and purchasing 67 vet surgeries between 2016 and 2017.
The UK Pets at Home company acquired two existing large franchises of Vets4Pets and Companion Vet, operating mostly out of stores. There are 296 in-store vet surgeries, 153 “stand alone” vets, 4 specialist hospitals, 306 grooming parlours – 55% of its stores contain both vet services and grooming parlours; total revenue generated through stores, online marketing activities and other activities totals PS843 Million.
Big business controls over 900 veterinary surgeries
Two companies intend to purchase or open over 50 new veterinary practices annually. As they already control nearly 20% of all 5,536 vet practices (according to the Royal College Veterinary Surgeons), and are expected to acquire even more in coming years, analysts expect them to control half within ten years; furthermore they will control most diagnostic labs, drugs, pet food accessories as well as services like grooming or cremating your pet.
CVS and Pet and Home have successfully employed over 300 newly graduated vets over the last three years, which is fantastic news. Pet and Home also created many businesses for vets that would otherwise take years to become partners – providing funding, facilities and equipment while taking a cut of profits until loans are repaid.
All this opens the industry up to potential monopoly, rising costs, and possibly poorer service – especially given franchises can undercut traditional practices by offering promotional offers like cheap vaccination deals; once clients enter, many may remain loyal customers of their franchise.
Are Home Visits Becoming History? Many farms have already moved away from conducting farm visits as the profitability of treating companion pets inside their own offices is more appealing. Furthermore, any remaining farm practices may soon be taken over by in-store farm vets who specialize in treating companion animals.
Home visits have already become less of a priority for professionals, who argue they are time wasting and that owners must assume full responsibility to get their patients to the surgery on time. Furthermore, they question 24-hour coverage expectations.
Once upon a time, veterinarians covered their out of hours care themselves; now however, most rely on out-of-hours vet companies as an outsourced service provider. These firms typically sublease a nearby practice to them for the night and weekend periods before leaving in the morning having seen patients from all other practices nearby.
These companies, despite protestations, charge outrageous fees that cause welfare concerns when owners cannot pay. A consultation fee can cost as much as PS150 plus and overnight hospitalisation/treatment may require intravenous drip or x-rays which increases costs further. Patients kept overnight may even be released early the next morning because the practice they operate from needs their cages for admissions during morning hours.
Where will it end?
Our future appears to involve all veterinary services being controlled by a select few companies who dictate pricing, service quality and care standards. While veterinary regulating authorities might wish to intervene at some point in the future, their authority could become difficult if vets prefer their employers over the college regulating them. Eventually it may become necessary for the Monopoly Commission to examine what is happening within this industry.