Anna Claire Vollers | (TNS) Stateline.org
Melissa Ezell, a vet at a clinic in Huntsville, Alabama, noticed changes at her workplace as private equity firm National Veterinary Associates took over.
Ezell and other vets felt pressure from management to make more money from each appointment, leading to a focus on offering additional services and seeing more patients outside of normal hours.
Ezell, who started working at the clinic in 2021, said that there was no pressure to make a certain amount of money before, but that changed after the clinic was acquired by National Veterinary Associates.
The clinic, owned by National Veterinary Associates, was acquired by global private equity firm JAB Consumer Partners in 2020, leading to a shift in atmosphere and a greater emphasis on increasing profits by early 2023, according to Ezell.
The entry of private equity into the human health care industry has recently caused public outrage and legislative scrutiny. drawn public outrage and legislative scrutiny with firms being accused of increasing prices, reducing services, and closing hospitals to maximize profits for shareholders.
Now, some veterinarians and advocates are concerned that private equity's involvement in the pet health care industry could lead to similar outcomes.
Certain states already have laws preventing non-veterinarians from owning veterinary practices, and some consumer advocates want states to review large-scale acquisitions in the industry.
Dr. Grant Jacobson, a veterinarian from Iowa, who serves on the board of the Independent Veterinary Practitioners Association, stated that many private equity funds view veterinary medicine as a profitable area and have driven up prices for consumers, limited market competition, and bypassed laws prohibiting non-veterinarians from owning veterinary practices.
In recent years, private equity firms like Shore Capital Partners, KKR, TSG Consumer, and JAB Consumer Partners have made significant investments in veterinary practices, specialty animal hospitals, pet insurance services, and pet food companies.
According to private equity firms, their investments are providing clinics and providers with the necessary capital to improve technology and efficiency. Additionally, corporate chains can often offer their employees better benefits, including health insurance.
National Veterinary Associates stated that their corporate philosophy is rooted in vets making medical decisions rather than a corporate office, and that their shared ownership program by veterinarians is the largest in the industry and unique among their peers.
The National Veterinary Associates stated that their goal is to create a network of hospitals that pet owners have faith in, are easy to reach, and offer the best care possible.
JAB Consumer Partners did not reply to Stateline’s request for comment.
More pets means more money
Private equity uses combined investment funds from pension funds, endowments, and wealthy individuals to acquire controlling interests in companies. These firms typically seek a quick profit on their investment before selling it within a few years. In recent years, they have been purchasing small businesses in various industries — such as nursing homes to car washes.
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