US Senator from Massachusetts, Elizabeth Warren, is trying to stop the rolling-up of veterinary care into a few small monopolistic providers.
I recently switched to a small private veterinary hospital because the hospital I had gone to for over twenty-five years was sold to a corporation. Prices went up, availability went down, and when you finally saw someone, they wanted to do every test imaginable. I will spend any amount of money on my pets when they need something, but I hate being ripped off. The situation in my area is far from unique.
Mars, Inc. owns the company that bought the hospital and operates over a thousand veterinary hospitals in the United States. Mars also owns a veterinary equipment supply company and two doggie daycare companies. JAB Holding Company is a private equity firm controlling a third of the veterinary clinic marketplace. Elizabeth Warren, Massachusetts senator and known dog lover, has joined fellow senator Richard Blumenthal from Connecticut in taking aim at JAB:
Private equity rollups of veterinary practices harm veterinarians and customers alike. Veterinarians describe increased pressure from private equity owners to "do more and see more patients." Overworked staff feel compelled to upsell patients on expensive tests and procedures to meet demanding quotas. One California-based veterinarian employed at a practice owned by the candy and food conglomerate Mars. Inc. told reporters about corporate managers pushing clinicians to hit monthly quotas for particular procedures. Veterinarians have shared how their corporate managers pushed clinics to "become more efficient profit centers." In some cases, private equity owners have tied veterinarians' income to how much revenue they generated, "creating an incentive to see more pets, order more tests and upsell wellness plans and food." Another veterinarian reported feeling ashamed telling patients the estimate for procedures "because it was so insanely high." Some corporate owners even required veterinarians to attend coaching on "getting the client to a yes."
The letter requests detailed financial information about JAB's veterinary facilities and the pet insurance and financial products they also offer. JAB's involvement in so many levels of veterinary care is likely to raise questions about anti-competitive practices. Senator Warren has previously cosponsored the Stop Wall Street Looting Act, which was drafted to rein in private equity firms by closing loopholes and increasing transparency.
Previously:
• Thomas Piketty explains how Elizabeth Warren's wealth tax is American as apple pie
• Elizabeth Warren reveals her plan to break up Big Tech
• Elizabeth Warren profile: portrait of a savvy politician who appeals to working people, and who can get stuff done
