CBC News Marketplace, an investigative consumer watchdog in Canada, recently conducted an INVESTIGATION into how corporatization of veterinary medicine is impacting the pet care industry – rising number of pet owners say they’ve seen a dramatic increase in veterinary costs in the past few years. Today, more than half of emergency and specialty hospitals and more than 20 percent of all general veterinary practices are owned by six corporations — prior to 2010, nearly all general practices in Canada were independently owned and operated.

The 3 biggest corporate consolidators in Canadian vet care are VetStrategy, VCA Canada and NVA Canada. Collectively, these corporate entities own more than 600 veterinary practices.

As part of a hidden camera investigation, CBC’s Marketplace visited six different veterinary hospitals across Toronto, all of them owned by VCA Canada or VetStrategy. When it came to pricing, all of the exam fees (shoppable item) were within a similar range but prices for the diagnostic test (non-shoppable) varied considerably.

Practice Acquisitions Lacking Ownership Transparency:

• At one practice group, there was no branding at its locations that identified the true corporate owner. Marketplace obtained a 2019 document emailed to vet staff working at a practice bought by VetStrategy in Manitoba, that told veterinary staff that they should not “actively communicate to clients” about the buyout — they will create a “communication guide to use as a reference in the event that you are asked about the change.”

In a separate interview, a worker told Marketplace that she noticed prices started to climb after the hospital was sold to a private equity backed consolidator and had “five service fee increases within one year.” Each increase was between 3 to 6 percent, and no rationale was provided to staff.

NOTICE: CARE for Pets™ was contacted and interviewed by a producer from CBC Marketplace as part of this investigation.

RELATED:

• Full Company Responses: Company and Government Statements
  https://www.cbc.ca/news/marketplace/cause-for-paws-the-rising-cost-of-pet-care-1.7438275

• Veterinary care has become significantly more expensive across Canada – this is a major reason why
  https://www.reddit.com/r/britishcolumbia/comments/1i924je/veterinary_care_has_become_significantly_more/?rdt=53255

• What Are Causes for the Soaring Costs of Veterinary Care?
  https://www.pets.care/soaring-costs-of-veterinary-care/
  • The common industry narrative for the rapidly rising costs of veterinary care is primarily attributed to increased demand, advanced medical care for pets, a shortage of veterinarians, higher labor costs and growing presence of large corporations acquiring independent practices.

OTHER MARKETS NEGATIVELY IMPACTED BY THE RAPID CONSOLIDATION OF VETERINARY PRACTICES:

UK’s Antitrust Watchdog Launches Full ‘Market Investigation’ of the Veterinary Sector (5.25.24)
https://www.pets.care/news/2024/05/cma-launches-full-market-investigation-of-uk-veterinary-sector/

• The Competition & Markets Authority (CMA) will proceed with a formal market investigation into the United Kingdom veterinary services market — concerns over pricing and competition.