Private equity’s foray into the human health care industry in recent years has drawn public outrage and legislative scrutiny as firms have been blamed for increasing prices, slashing services and shuttering hospitals to maximize shareholder profits. Now, some veterinarians and advocates are sounding the alarm that private equity’s entry into the pet health care industry could lead to similar results. HUNTSVILLE, Ala.
Some states already have laws that prohibit non-veterinarians from owning veterinary practices, and some consumer advocates want states to review large-scale acquisitions in the industry. In a statement to Stateline, National Veterinary Associates said its corporate philosophy is “grounded in vets making medical decisions and not a corporate office,” and that its program of shared ownership by veterinarians is “the industry’s largest such program and unique among our peers.”
But the founder sold the practice to a large veterinary chain owned by Mars Inc. — the private company best known for owning candy brands that include M&Ms — for more than $1 million above his offer, Jacobson said. Mars, while not a private equity firm, is the biggest consolidator of pet care companies in the United States, owning pet food companies, pet pharmacies and veterinary care clinic chains such as Banfield Pet Hospitals and BluePearl.
Even though most of the veterinarians surveyed reported working for corporate-owned clinics, Kogan found more than half said they would prefer to work in privately owned clinics. The benefits offered by corporate chains, such as health insurance, didn’t seem strong enough to override other preferences, Kogan told Stateline.
In its statement to Stateline, National Veterinary Associates noted that it has made “continued investment in technology and infrastructure, pioneering clinical research, industry-leading continuing education programs and wellbeing initiatives.”Last August, Thrive Pet Healthcare announced it would be closing the only 24-hour emergency veterinary clinic in the Rochester, New York, metro area.
If states were to authorize officials or agencies to review similar large-scale mergers and acquisitions in the veterinary industry, that “would be a good first step” toward protecting consumers, said Fenne, of the advocacy group.
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