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As veterinary costs climb, private equity ownership of clinics draws scrutiny
PBS • • business
Key Points:
- Veterinary care costs have risen approximately 60% since 2014, outpacing inflation, with private equity firms increasingly acquiring veterinary practices across the U.S., contributing to rising prices and market consolidation.
- Private equity ownership aims to increase profits by raising prices and expanding operations, which can strain the relationship between veterinarians and pet owners and potentially prioritize profits over patient care.
- Corporate-owned veterinary practices now represent 30-50% of the market overall and up to 75% in specialty care fields, driven by the emotional willingness of pet owners to spend on their animals' health.
- Independent veterinarians face challenges competing with corporate groups due to volume discounts and economies of scale, risking reduced local competition and higher costs for consumers.
- Some pet owners report negative experiences with corporate-owned clinics, including lack of continuity of care and aggressive billing practices, prompting efforts like PrivateEquityVet.org to increase transparency about clinic ownership.
