CASE STUDY: Rapid Consolidation of Veterinary Practices in Arizona Will Mean Higher Prices, Fewer Choices
First-of-its-kind study conducted by CARE for Pets™ (Consolidator Purchases of Independent Veterinary Practices are Soaring: September, 2024)

Over the past decade, corporate consolidators which are mostly backed by private equity firms, have launched a large-scale effort to buy up small veterinary practices and consolidate them under the ownership of larger corporations — the vast majority of these practices were previously independently owned and operated.

The study seeks to objectively quantify the rapid rise in acquisitions of independent practices by corporate consolidators with in the state of Arizona — consolidator purchases exceed independent transactions by a wide margin. Starting in 2020, the number of consolidator purchases in the United States overtook independent transactions for the first time, according to the 2021 Brakke Industry Overview report.

THE STUDY FOUND THAT OVER THE LAST 5 YEARS, 67% OF THE INDEPENDENT GENERAL PRACTICES SOLD IN THE STATE OF ARIZONA WERE ACQUIRED BY A CORPORATE CONSOLIDATOR, MANY ARE BACKED BY PRIVATE EQUTIY FIRMS.

According to Todd Nemet, President and Founder of CARE for Pets™:

  • Our research shows that the vast majority of independent general practices sold are rapidly being acquired by corporate consolidators in the state of Arizona — especially the larger practices that employ many veterinarians. The acquisition rate is more than double the estimated market share of corporate-owned general practices in the United States which is 30% of all general practice locations as of 2023. The nearly 1 out of 3 corporate practices accounts for more than 50% of all industrywide hospital visits and revenue, as consolidators often own larger hospitals. As the veterinary healthcare industry rapidly consolidates, this will result in much higher prices and fewer choices for pet owners — workers will also be negatively impacted placing downward pressure on wages.

ABOUT THE CASE STUDY:

  • CARE for Pets™ reviewed the Arizona State Veterinary Medical Examining Board meetings minutes starting from 8.21.19 thru 7.17.24. in order to determine ownership changes of veterinary practices (approval of premises licenses – new owner). The board issues licenses to practice veterinary medicine in the state of Arizona. Individual practice websites rarely disclose any recent changes in ownership to pet owners on their consumer-facing websites.
  • CARE for Pets™ cross referenced the dba name (local brand) with our VERIFIED™ app (an online tool that is part of the Companion Platform™ that is provided on the Pets.Care website) in order to determine the corporate owner of the practice.
  • All records relating to ownership changes of veterinary practices are listed with in our IDENTITY™ app, also part of the Companion Platform.™
  • Only records relating to general practices that provide primary care for companion animals such as cats and dogs were included in the case study. The acquisition of AZPetVet with 22 locations was not included in the study.
  • 67% of the general practices were sold to veterinary consolidators.
  • The sample size included 88 general practice locations. A total of 143 records were retrieved from the veterinary board meetings minutes.
  • Consolidators typically purchased larger independent practices that employed on average 3.4 veterinarians (median: 3).

THE FOLLOWING VETERINARY CONSOLIDATORS OWN NON-BRANDED PRACTICES IN THE STATE OF ARIZONA:
A non-branded practice is the local brand that existed before the acquisition by the consolidator — the original company name. Consolidators often retain the original company name and may purposely avoid corporate ownership identification and hide ownership. You can view the individual locations by accessing our VERIFIED™ app. Simply enter the name of the consolidator into the search box to view all practice locations. National Veterinary Associates (NVA) is the largest consolidator in Arizona with 46 practice locations.

  1. AmeriVet (2) | www.amerivet.com
  2. Blue River Petcare (2) | www.blueriverpetcare.com
  3. CareVet (1) | www.carevethealth.com
  4. Companion Pet Partners (8) | www.companionpet.com
  5. Destination Pet (4) | www.destinationpet.com
  6. Happy Paws Veterinary Partners (2) | www.happypawsvp.com
  7. Heartland Veterinary Partners (3) | www.heartlandvetpartners.com
  8. Hippo Veterinary Group (8) | www.hippovets.com
  9. Lakefield Veterinary Group (10) | www.lakefieldvet.com
  10. Mission Veterinary Partners (6) | www.missionvetpartners.com
  11. National Veterinary Associates (NVA) (46) | www.nva.com
  12. O’Brien Veterinary Group (1) | www.obrienveterinarygroup.com
  13. PetVet Care Centers (10) | www.petvetcarecenters.com
  14. Southern Veterinary Partners (11) | www.southernvetpartnersllc.com
  15. Suveto (1) | www.suveto.com
  16. VetCor (10) | www.vetcor.com
  17. WellHaven (1) | www.wellhaven.com
  18. Western Veterinary Partners (13) | www.westernvetpartners.com

RELATED:

  • Sen. Elizabeth Warren Targets Private Equity Company for Consolidating Veterinary Sector, Raising Costs (8.16.24)
    https://www.pets.care/news/2024/08/senator-elizabeth-warren-targets-private-equity-company-for-consolidating-vet-care-raising-costs-for-pet-owners/

    • Over the past decade, private equity firms have launched a large-scale effort to buy up small veterinary practices and consolidate them under the ownership of larger corporations — accompanying rise in prices represents a major issue for American consumers and a life and death issue for their pets.
  • CEOs of Veterinary Consolidators & Hospital Groups
    https://www.pets.care/list-of-chief-executive-officers-of-veterinary-consolidators/

    • There are currently more than 70 veterinary consolidators operating in the United States. In the next decade, less than 10 large corporate groups will own, operate and control 6 out of 10 general practices based on current u.s. trends and abroad.