U.K.’s Antitrust Watchdog to Explore Incentive-Based Compensation in Veterinary Medicine

July 21, 2024

The United Kingdom is one of the most concentrated veterinary markets in the world where practices are owned and operated by a small number of corporate groups — the Inquiry Group made up of independent experts will lead the market investigation and has set out its areas of focus.

The Competition & Markets Authority (CMA) recently PUBLISHED an issues statement which sets out the Inquiry Group’s initial theories on what might be affecting competition in the United Kingdom’s veterinary sector and the potential solutions or ‘remedies’ that could be considered. The issues statement does not set out any findings or conclusions at this early stage of the investigation – it is for the Group to determine whether there are competition concerns in the market and how best to address them.

The CMA also plans to investigate incentives received by veterinary professionals including veterinarians.

Proposed Focus: Line Item 26.(d) of the Issues Statement:
Within this framework, there are some overarching issues which we shall be particularly keen to explore throughout this investigation:

  • 26.(d): The incentives on veterinary professionals to facilitate consumer choice, that is to help pet owners make informed decisions and choose the best veterinary services for their needs at a competitive price (eg advising pet owners on how different referral centres compare on price and treatments offered).

Parties are invited to provide submissions commenting on the issues and possible remedies. The deadline for submissions is 30 July 2024.

UPDATED: July 28, 2024 — Technician production tracked to determine bonuses and or compensation adjustments.

RELATED:

  • Impacts of Production-Based Compensation in Veterinary Medicine
    https://www.pets.care/compensation-models-for-veterinarians/

    • Nearly 2 out of 3 full-time associate veterinarians in the United States are paid on commission — how much revenue they bring into the practice. Doctors can earn up to 25% of their ‘production’ generated through their delivery of services and sale of products.
  • The Numbers Game Can Add Up To A Winning Strategy For Practices (7.27.24)
    https://www.dvm360.com/view/the-numbers-game-can-add-up-to-a-winning-strategy-for-practices

    • In addition to the veterinarian performance monitored by the veterinary software program, technician performance would also be tracked. This way, monetary compensation could be more realistically adjusted to performance and not simply be a function of a predetermined pay range — compensation could result in some meritorious increases.
  • What’s Behind the High Cost of Vet Care?
    https://www.pets.care/news/2024/05/whats-behind-the-high-cost-of-vet-care/

    • The arrival of private equity and big corporate firms has given rise to an increase in upselling — practice of proposing additional procedures.

LACK OF CONSUMER AWARENESS ABOUT PRODUCTION-BASED COMPENSATION IN VETERINARY MEDICINE:
Only until recently has the mainstream media covered any news about the fact that veterinarians salary can be tied to performance — it’s typically glossed over and its potential impact on the soaring costs of veterinary care are not discussed. The amount of revenue a doctor brings into the practice can have a substantial impact on their compensation. In some cases, money can be deducted from a future paycheck when the revenue amount is below the stated baseline (Production Salary with Negative Accrual).

  • Why You’re Paying Your Veterinarian So Much (6.23.24)
    https://www.nytimes.com/2024/06/23/health/pets-veterinary-bills.html

    • (Original Story Title: ‘We’re Still Paying’: How Pets Became a Big Business). “Veterinarians from around the country told The New York Times that their corporate managers were pushing clinics to become more efficient profit centers. Vets were often paid based on how much money they brought in, creating an incentive to see more pets, order more tests and upsell wellness plans and food.”