Since 2008, pet owners have been inundated with advertisements and emails promising savings and convenience when purchasing veterinary products through online retailers or big-box stores. These early marketing campaigns often portrayed veterinarians unfairly, asking questions like, “Why take an expensive trip to the vet and pay outrageous prices for the same products?”
This was a turning point for the pet care industry. Retailers recognized that pet owners were spending billions annually on pet products and services, creating a lucrative opportunity. Private equity firms quickly entered the market, investing heavily in pet care, pet products, and veterinary services. This led to rapid corporatization within the industry, where smaller veterinary practices were consolidated into large corporate groups.
But what does this shift mean for pet nutrition, safety, veterinary pricing, and the quality of care at your local veterinary practice? How does it impact you as a pet owner?
Corporatization and Private Equity in Veterinary Care
When people think of corporate veterinary practices, they often imagine clinics inside big-box stores. However, the majority of corporate-owned practices retain their original names and outwardly appear to be independent. This strategy leverages the goodwill and reputation of the original practice name, helping corporations maintain client trust.
Corporate practices operate under private equity investors, who aim to generate returns on their investments. This often leads to higher quotas for tests, standardized treatment protocols, and increased patient loads for associate veterinarians. Unfortunately, this model can sometimes feel rushed, less personalized, and result in higher invoices.
Privately owned veterinary practices, on the other hand, are often family-run and focus on individualized care. Without multiple layers of management, these practices can tailor their services to your pet's specific needs. For example, vaccination schedules in private practices are often based on a pet’s lifestyle and exposure risks, rather than a one-size-fits-all plan. This level of customization reflects the deep care and attention independent veterinarians provide.
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Pet Food Trends: Navigating the Overwhelming Options
The rise in pet care spending also triggered an explosion of new options in the pet food market, including “natural,” “raw,” “grain-free,” and “home-cooked” diets. A multitude of pet food manufacturers rapidly emerged, relying heavily on marketing to appeal to pet owners, emphasizing the idea that pets are part of the family and should be fed as humans. However, many of these products lack AAFCO controlled feeding trials or rigorous scientific backing to demonstrate they meet the nutritional needs of the pets they are intended for
Veterinarians recommend diets that follow WSAVA (World Small Animal Veterinary Association) guidelines, which ensure foods are rigorously tested for safety and nutritional value. However, myths about pet nutrition have become widespread. These include claims that veterinarians receive little training in nutrition or financial incentives for recommending certain brands. Both of these statements are absolutely false.
In reality, veterinary practices often make little to no profit from selling prescription diets. The cost of carrying these foods is high, and the profit margin is typically around 15%, which barely covers the expense of ordering and stocking them. Despite this, veterinarians continue to educate pet owners about the risks of untested diets, including the alarming rise in diet-related dilated cardiomyopathy (DCM), a potentially fatal heart condition linked to certain boutique diets.
Why Do Medications Cost More at the Vet?
One of the most common questions pet owners ask is why medications cost more at the veterinarian’s office than through online retailers or big-box pharmacies. The answer lies in how wholesale pricing works.
- Wholesale Discrepancies: Large corporations and online retailers buy medications and products in tremendous bulk and can negotiate steep discounts. Independent and family owned veterinary practices, which purchase smaller quantities, cannot access the same wholesale pricing because they lack the national scale to negotiate. In some cases, private practices pay more than twice the wholesale rate for products, medications and lab fees than the wholesale rate offered to corporate practices and big box chains. Rates are not universal across the industry even from the same manufacturers.
- Middlemen and Overhead Costs: Independent practices must purchase medications products and supplies from manufacturers through third party distributors who add markups, while big-box stores and online retailers often bypass these middlemen. Veterinary clinics also have higher overhead costs, including staff wages, storage, and customer service, which are reflected in pricing. Online retailers have none of these expenses.
- Convenience and Immediate Access: When your pet needs medication, your veterinarian can provide it immediately, along with guidance on how to use it and what side effects to watch for. In contrast, online retailers may take 7–14 days to deliver medications, which delays treatment for your pet.
It’s important to understand that private veterinary practices aren’t inflating prices to take advantage of clients. Instead, their pricing reflects the realities of running a small business and maintaining high-quality care. Interestingly, corporate veterinary practices often charge similar or higher prices for medications, despite benefiting from wholesale discounts.
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What Does the Future of Veterinary Care Look Like?
The veterinary industry is undergoing significant change. Ten years ago, only about 8% of practices were corporately owned. Today, that number has risen to 23–30%. This shift is driven by aging practice owners selling their businesses and a declining interest among younger veterinarians to take on ownership roles.
While some younger veterinarians still choose to become practice owners, many prefer to work as associates due to the financial and logistical challenges of ownership. Unfortunately, this trend contributes to the ongoing corporatization of veterinary medicine.
Private practices remain vital to maintaining personalized, compassionate care in the industry. Supporting your local veterinarian helps preserve independent practices, which prioritize your pet’s health and well-being over corporate profits.
Why Supporting Your Local Veterinarian Matters
Your family veterinarian does more than provide medical care—they build relationships with you and your pet. Unlike big-box stores or online retailers, your veterinarian is there to answer questions, address emergencies, and offer personalized recommendations based on years of training and experience and an understanding of your pet and their conditions from infancy to seniority.
When you support a privately owned veterinary practice, you’re investing in a model of care that values relationships, compassion, and trust. Whether it’s immediate access to medication, customized treatment plans, or expert nutritional advice, your veterinarian offers services that online retailers simply can’t match.
If you have questions and you'd like to reach out to us, you can call us directly at (210) 496-1315, or you can email us at [email protected]. Don't forget to follow us on social media Facebook, Instagram.