Corporate Vet groups in bother?

[capfits]

I think there are six corporate vet groups in the UK.
In no particular order,
IVC,
Vet Partners,
Vets for Pets,
CVS,
Medivet,
Linneas.

They have different models, levels of integration, but they all borrowed some cash to get to their present forms.

IVC has been very aggressive in their growth and paid rather large money for their growth. But, the chickens are coming home to roost. They are no making enough cash and have started off loading practices, closing those they cannot and making a reasonable proportion of their staff redundant. They have been doing it in a rather haphazard manner, some practices get rid of vet nurses, others support staff and even more daftly their clinical staff. (They will simply start own practices.)

Vet Partners has issues with staff striking in practices for better pay and conditions whilst pumping out letters saying they are not making any profit. (They are but they are disingenuous about it)

So all this coupled with CMA inquiries will they split up and possibly lead to an increase in independents.

Some of these groups also have mixed practices or so please do not think it may not affect you.

 

[David.]

Are some of them not owned by the same funds that own the pet insurance.
The corporate culture is to blame for the demise of most of the small vet practices doing farm work, and the horrendous price gouging and upselling in their now preferred small animal work.
It doesn't matter to pet owners how eye watering the bill is for a simple procedure, if the insurance is picking up the tab, seems to be where we are at.
Until you are uninsured.
It was always going to end badly.

 

[Martyn]

Lot of redundancy’s within the corporate world, some awful management structures in place, and on the shop floor a lot of vets now just do the job as to earn an income rather than with the passion they trained for.
Awful lot of deskilling going on, with many vets now just GP vets who don’t do any operations or see through treatment to animals they have admitted. Very down grading.
Out of hours now central locations not your local practice.

 

[yoki]

Pet healthcare here, now seems to have a lot of similarities to human healthcare in the states.

Hugely inflated prices which few question as the insurance covers it.

Not unlike car insurance and accident repair as well come to think of it.

 

[SilliamWhale]

Pet healthcare here, now seems to have a lot of similarities to human healthcare in the states.

Hugely inflated prices which few question as the insurance covers it.

Not unlike car insurance and accident repair as well come to think of it.

Why isn't competition sorting it out? Is it because people don't tend to move vets?

 

[David.]

Because they are all at it.
A "caring" profession ruined, for money grubbing.

 

[yoki]

Why isn't competition sorting it out? Is it because people don't tend to move vets?

Dare I say "cartel"?

 

[Boysground]

After a very long time my vet has restructured

Horses sold off now a private practice
Small animals sold to corporate looks the same on the outside, not sure it will stay the same.
Farm is still a partnership less partners but from what i can see the business is growing, service I get is brilliant.

Biggest problem is I cant hide the dogs in the vet bill

BG

 

[Pan mixer]

Which one is Westpoint?

I am quite happy with them.

 

[Top Tip.]

Our vets thankfully resisted the corporate takeover but are now going to an employee owned model. They are a very well run practice who provide excellent large animal cover and hopefully this will continue. There are two other practices in the area which have gone down the corporate route and have gone from being highly successful to starting to struggle. Can’t keep staff and staff leaving and starting to set up their own businesses.

 

[yoki]

Our vets thankfully resisted the corporate takeover but are now going to an employee owned model. They are a very well run practice who provide excellent large animal cover and hopefully this will continue. There are two other practices in the area which have gone down the corporate route and have gone from being highly successful to starting to struggle. Can’t keep staff and staff leaving and starting to set up their own businesses.

Hopefully a lot of the corporates will crash and burn and people who qualified as vets will ultimately still find a way to let the public avail of their services.

Pretty much all of the old established practices in our area have now been bought over, but there's one new owner operator set up recently not far away doing large animal work only and hopefully she'll make a go of it.

The old-school vets that I grew up knowing would be turning in their graves at how things are at present.

 

[PSQ]

“Borrowed some money…”

In case you’re wondering why your vets are charging £120 to euthanase a hamster (don’t ask ), the corporate mob that bought out my local vets refinanced themselves on Wall Street to the tune of $700 million pre covid, and the last set of results had nearly doubled their borrowing again.

This strategy was fine when they were paying out close to a million to buy out senior partners and stay ahead of the other groups, but now they’re having to service debt at 6 or 7% it doesn’t look so clever. But never mind, the greedy barstewards will soon make it up by robbing a few million pensioners.

 

[Top Tip.]

“Borrowed some money…”

In case you’re wondering why your vets are charging £120 to euthanase a hamster (don’t ask ), the corporate mob that bought out my local vets refinanced themselves on Wall Street to the tune of $700 million pre covid, and the last set of results had nearly doubled their borrowing again.

This strategy was fine when they were paying out close to a million to buy out senior partners and stay ahead of the other groups, but now they’re having to service debt at 6 or 7% it doesn’t look so clever. But never mind, the greedy barstewards will soon make it up by robbing a few million pensioners.

Local corporate £700 for a scale and polish on a dog. 20 minutes work.

 

[Exfarmer]

Local corporate £700 for a scale and polish on a dog. 20 minutes work.

Gosh, makes my private dentist look extremely cheap

 

[PSQ]

"A healthy gross margin of 77%", but the market will obviously stand these outrageous vet charges, and it's not like the RCVS or the government will say a single word about the blatant exploitation of responsible pet owners and farmers:

https://www.vetpartners.co.uk/app/uploads/2023/12/VETPARTNERS-GROUP-LIMITED-30-Jun-23-FINAL.pdf

 

[vantage]

Unfortunately they’ve shot themselves in the foot, as if in doubt as to the economics of treating an animal, it is now the best course to euthanise. Made the mistake of having the vet for a prolapse and a twisted uterus/ caesarean. In both cases the cow died.
The first loss is the least loss.
Vaccinations are also an outrageous rip off.
We’re not an endless money pit, for greed.

 

[yoki]

Unfortunately they’ve shot themselves in the foot, as if in doubt as to the economics of treating an animal, it is now the best course to euthanise. Made the mistake of having the vet for a prolapse and a twisted uterus/ caesarean. In both cases the cow died.
The first loss is the least loss.
Vaccinations are also an outrageous rip off.
We’re not an endless money pit, for greed.

Going by the take-overs here, small animal/pet is the target market, and when you factor in pet insurance it might not be an endless money pit but it's a pretty deep one nonetheless.

The main practice in the area, which used to be primarily a privately owned farm practice and only really started to do more small animal work about 30 years ago, was bought over recently by Medivet and soon stopped doing all farm work completely.

They also done the majority of TB testing in the area and that was ditched as well.

At the same time they also bought over a smaller local mixed practice but for some reason that sale was blocked by the CMA.

Strange that they investigated the sale of the small practice but not the larger one?

Medivet Group Limited / multiple independent veterinary businesses merger inquiries

The CMA investigated 17 completed acquisitions by Medivet Group Limited (Medivet) of independent veterinary businesses (listed below).

www.gov.uk

 

[BrianV]

The problem is investment funds with far too much money to invest & few scruples, so often they buy up companies milk them for every penny they can & then put them into administration as a tax loss, so many UK successful firms have gone to the wall this way

 

[Welderloon]

“Borrowed some money…”

In case you’re wondering why your vets are charging £120 to euthanase a hamster (don’t ask ), the corporate mob that bought out my local vets refinanced themselves on Wall Street to the tune of $700 million pre covid, and the last set of results had nearly doubled their borrowing again.

This strategy was fine when they were paying out close to a million to buy out senior partners and stay ahead of the other groups, but now they’re having to service debt at 6 or 7% it doesn’t look so clever. But never mind, the greedy barstewards will soon make it up by robbing a few million pensioners.

A legalised scam of the highest degree & exactly the reason these outfits have turned into the monster they have become.
Hopefully they get what they deserve, however, societal stupidity has allowed the rise of these corporations in the first place, too much bunny injecting & not enough neck stretching.

 

[onesiedale]

"A healthy gross margin of 77%", but the market will obviously stand these outrageous vet charges, and it's not like the RCVS or the government will say a single word about the blatant exploitation of responsible pet owners and farmers:

https://www.vetpartners.co.uk/app/uploads/2023/12/VETPARTNERS-GROUP-LIMITED-30-Jun-23-FINAL.pdf

mmmm.
a healthy gross margin of 77% , yet administrative expensive are 71% of turnover.
Something there doesn't add up, or am I missing something?