Private Equity’s Impact on Veterinary Care: Concerns and Consequences
Veterinarians Sound Alarm on Private Equity’s Influence in Pet Health Care Industry
HUNTSVILLE, Ala. — Veterinarians across the country are raising concerns about the growing influence of private equity firms in the pet health care industry, warning that the focus on profits could lead to higher prices, reduced services, and compromised care for animals.
Dr. Melissa Ezell, a veterinarian at a midsized animal clinic in Huntsville, Alabama, noticed a shift in atmosphere at her clinic after it was acquired by National Veterinary Associates, one of the largest veterinary chains in the nation. She and other vets felt pressure from management to increase profits, leading to concerns about overcharging pet owners and rushing through appointments.
Private equity firms like JAB Consumer Partners have been investing billions in veterinary practices, specialty animal hospitals, pet insurance services, and pet food companies in recent years. While these firms argue that their investments improve efficiency and provide better benefits for employees, some veterinarians and advocates worry about the impact on patient care.
Dr. Grant Jacobson, a veterinarian in Iowa, has seen corporate-owned chains in his region drive up prices, suppress market competition, and skirt state laws that prohibit non-veterinarians from owning veterinary practices. He believes that the influx of private equity into the industry could have negative consequences for both veterinarians and pet owners.
In a survey conducted by clinical sciences professor Lori Kogan, more than half of veterinarians working in corporate-owned clinics expressed a preference for privately owned practices. Many cited a desire for more autonomy and a voice in decision-making, suggesting that corporate ownership may not always align with their values.
As private equity firms continue to acquire veterinary practices and other pet care businesses, concerns about the impact on consumers and competition are growing. Some states have laws in place to prevent non-veterinarians from owning veterinary practices, but experts and advocates are calling for more oversight of large-scale mergers and acquisitions in the industry.
Despite the challenges posed by corporate ownership, veterinarians like Dr. Ezell remain committed to providing quality care for animals. She recently accepted a position at a privately owned clinic in Huntsville, where she hopes to continue making a difference in the lives of pets and their owners.
As the pet health care industry continues to evolve, the debate over the role of private equity in veterinary medicine is likely to intensify. Veterinarians, pet owners, and policymakers will need to work together to ensure that the best interests of animals are always prioritized in the rapidly changing landscape of pet care.