text: Spot & Tango, a direct-to-consumer (DTC) dog food brand, recently ANNOUNCED that it raised $38.5 million Series B funding round…
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  Posted in: Pet Food, PRIVATE EQUITY, Startups
  Pet Telehealth Startup Dutch Raises $20M Series A Funding Round
  March 3, 2022 Admin
  Dutch, a pet telehealth startup, recently ANNOUNCED that it has raised a $20 million Series A funding round led by…
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  Posted in: Startups, Telemedicine, Veterinary
  Bond Vet to open hospitals in Boston and Washington, D.C., Expands Beyond NYC
  February 17, 2022 Admin
  Bond Vet, a growing veterinary hospital group, recently ANNOUNCED that it plans to open several locations across the northeast, including…
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  Posted in: Hospital Groups, PRIVATE EQUITY, Startups, Veterinary
  Pet Insurance Provider Doggo Acquired by Antelope
  February 12, 2022 Admin
  Doggo, a pet insurance provider founded in 2018, was recently ACQUIRED by Antelope (based in San Francisco, was founded in…
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  Posted in: Insurance, PRIVATE EQUITY, Startups
  Mobile Vet Startup THE VETS Secures $40 Million in Seed Funding
  February 4, 2022 Admin
  The Vets, a mobile veterinary startup, recently ANNOUNCED that it has secured $40 million in seed funding. The round was…
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  Posted in: In-Home, Startups, Veterinary
  Fresh Pet Food Company PetPlate Raises $19M Series B Funding Round
  December 31, 2021 Admin
  PetPlate, a fresh-cooked dog food delivery company, recently ANNOUNCED that it closed $19 million dollars in Series B funding led…
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  Posted in: Pet Food, Startups
  Dog Safety System Halo Completes Series B Funding Round
  December 27, 2021 Admin
  Halo, a pet-tech startup that sells the Halo Collar (a safety system for dogs) recently ANNOUNCED the completion of its…
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  Posted in: Lost, Startups
  Urgent Vet Hospital Startup Sploot Opens First Location in Denver
  December 16, 2021 Admin
  Urgent veterinary care startup Sploot, has recently opened it’s first animal hospital in Denver, Colorado and plans to open additional…
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  Posted in: Startups, Veterinary
  Biotech Startup PetDx Raises $62M Series B to Increase Adoption of Multi-Cancer Early Detection Test for Dogs
  December 10, 2021 Admin
  PetDx, a molecular diagnostics company, that uses genomic information to improve pet health recently ANNOUNCED the completion of a $62…
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  Posted in: Genome, Startups, Veterinary
  Fuzzy Raises $44 Million in Funding led by Icon Ventures
  December 1, 2021 Admin
  Fuzzy Pet Health (Fuzzy), a leading digital pet care company, recently ANNOUNCED it has raised $44 million funding round led…
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  Posted in: Startups, Telemedicine, Veterinary
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  VetCor Acquires Consolidator with over 150 Practice Locations November 17, 2022
  CONSOLIDATION: AmeriVet Veterinary Partners Acquires Consolidator with 14 Practice Locations November 13, 2022
  THE CORPORATIZATION OF VETERINARY MEDICINE
  The acquisition of private-owned animal hospitals by corporate entities such as veterinary consolidators has accelerated over the last few years and is largely invisible to most pet owners because consolidators view the corporatization of a practice as a marketing liability. This has potentially serious implications for competition, pet healthcare costs and may worsen the labor shortage of veterinarians and veterinary technicians.
  Are Consolidators Helping or Hurting Veterinary Medicine?
  MANY CORPORATE PRACTICES LED BY NON-VETERINARIANS
  Study conducted by CARE for Pets™ reveals that the majority of veterinary consolidators are led by non-veterinarians. These corporate entities employ a large infrastructure of managers and support teams and require significantly greater revenue to be profitable. Today, approximately 1 out of every 4 (based on recent trends, may reach more than 70% within the next 10 years) general veterinary practices in the U.S. are owned by corporate consolidators.
  CEOs of Veterinary Consolidators and Hospital Groups
  IS QUALITY OF CARE IMPACTED BY COMMISSION-BASED PAY?
  Today, approximately 2 out of 3 full-time associate veterinarians are paid on "production" (commission). Compensation models for veterinarians consist either of a fixed salary, salary plus commission, or 100% commission. This has potentially serious implications on the quality of veterinary medicine and on pet healthcare costs. A new hospital group startup is bucking the trend on commission pay and will compensate doctors "without the pressure of production-based salary."
  IS PRIVATE EQUITY RAISING HEALTHCARE COSTS FOR PETS?
  Private equity (PE) involvement in veterinary medicine (owns many corporate consolidators) has substantially increased in recent years. PE strategy (prioritize short-term profits) is to consolidate the pet care industry through practice acquisitions in order to enhance value and drive higher earnings. In human medicine, raising prices at hospitals has been a common strategy after a private equity acquisition. Current trends in human medicine indicate that pet healthcare costs could potentially significantly increase due to private equity ownership of veterinary practices.
  How Private Equity is Impacting Human Medicine
  IS INDUSTRY CONSOLIDATION THE ROOT CAUSE OF THE PROBLEM?
  A new hospital franchise offered by a leading brick-and-mortar retailer "will help many veterinarians who want to own a practice and otherwise couldn’t because of the consolidation within the industry." Within approximately the next decade, the vast majority of animal hospitals will most likely be owned by a select few corporate consolidators.
  PetSmart to Offer In-Store Practice Franchise to Veterinarians
  CASE STUDY: Lack of Ownership Transparency in Veterinary Practices
  Study conducted by CARE for Pets™ reveals many veterinary consolidators communicate misleading statements about ownership information on their individual practice websites which is most likely to create a false impression to pet owners that the practice is independently owned and locally operated. Most veterinary practices acquired by corporate consolidators often retain their original company name and may purposely avoid corporate ownership identification.
  Is Your 'Local' Animal Hospital Corporate-Owned?
  COMMON PERCEPTIONS ABOUT CORPORATE PRACTICES
  There is a general perception with in the pet care industry that many corporate-owned veterinary practices prioritize profits, posing a threat to patients and veterinary workers. Many of these big corporations are backed by private equity firms which have a short-term investment time horizon (holding period is typically 3 to 5 years, the length of time between the purchase and sale of its network of hospitals) that prioritizes generating returns for their investors and may overlook the quality of patient care and the wellbeing of their employees.
  Common Perceptions of Corporate Veterinary Practices
  LOCAL MATTERS: INTERVIEW WITH PRESIDENT OF IVPA
  CARE for Pets™ interviews the President of the Independent Veterinary Practitioners Association (IVPA) about the importance, benefits, and value of independently owned & locally operated veterinary practices to pet owners and their companion animals, and to the local community.
  Interview with Dr. Bonnie Bragdon of the IVPA
  WILL PRIVATE EQUITY FIRMS TAKEOVER PET INDUSTRY?
  Today, private equity (PE) firms control thousands of veterinary practices, major pet retailers, pet insurance companies and pet product manufacturers. Other pet care startups are founded and led by former employees of private equity firms and it is not disclosed in a transparent manner.
  Private Equity Investments in Pet Care Industry
  HEIGHTENED SCRUTINY OF PRIVATE EQUITY M&A DEALS
  Today, approximately 3 out of 4 specialty and emergency clinics in the U.S. are owned by corporate consolidators. The Federal Trade Commission (FTC) says "private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the commission’s radar."
  FTC Intervenes PE Acquisition Citing Antitrust Concerns
  BUYING TO SELL: IRREPARABLE HARM TO PET INDUSTRY?
  Roll-ups, a common strategy for consolidators, buys several practices and combines them into a larger organization in order to obtain a higher valuation. The combined entity is resold (short-term investment horizon) to another industry consolidator at a substantial profit and the process repeats. Hospital groups can sell for 100s of millions of dollars (often over $1 billion, and annual earnings can more than double).
  Veterinary Practice Consolidation in the Pet Care Industry
  ACCELERATE POSITIVE CHANGE IN PET CARE INDUSTRY
  As "the internet's most trusted consumer advocate for the pet care industry,"™ CARE for Pets™ "seeks to empower pet owners to effect positive change in the pet care industry in order to provide the best care for your pet."
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  Disclaimer: CARE for Pets™ (CFP™) - Part of the CARE for Animals Network™ (CFAN™), does not guarantee accuracy of displayed data nor endorse or recommend any pet products and services which may also include veterinary practices, veterinarians, pet insurance, and animal welfare organizations.