Are Big Corporates Driving Up Vet Costs? What the CMA’s Investigation Could Mean for Pet Owners

The cost of veterinary care has been on a steep upward climb, leaving many pet owners wondering: why does it seem so expensive to take their pets to the vet these days? The UK’s Competition and Markets Authority (CMA) is investigating this very question, looking into whether corporate ownership of veterinary practices is driving up costs and limiting choices for pet owners. With their findings set to be released soon, let’s explore what this investigation could mean for you and your pet.

Why Is the CMA Investigating the Vet Sector?

The CMA’s inquiry, which began in September 2023, was launched in response to growing concerns about rising veterinary fees and the increasing consolidation of practices under large corporate groups. Historically, most veterinary clinics were independently owned, but over the past decade, the landscape has shifted dramatically. In 2013, around 89% of practices were independent, but today, that number has dropped to approximately 40-45%, with the rest now owned by corporate groups often referred to as the “Big Six.”

The investigation’s goal is to assess whether competition within the sector is working as it should. Are consumers getting fair value, or is the dominance of corporate-owned clinics inflating prices and reducing transparency?

How Corporate Consolidation Affects Costs

Corporate consolidation in the veterinary sector brings economies of scale, but it can also have unintended consequences for pet owners. One key concern highlighted during the investigation is the issue of internal referrals. Many corporate groups own both primary care (general practice) clinics and specialist referral centres, leading to a practice where pets are referred internally rather than to independent specialists. This reduces options for owners and could lead to higher costs due to limited competition.

Price transparency is another significant concern across the sector. The CMA found that around 80% of veterinary practices, both independent and corporate, do not publish core prices on their websites. This lack of information makes it difficult for pet owners to compare costs and make informed decisions. When prices are unclear, pet owners may unknowingly face significant financial burdens.

The Welfare Impact of Rising Vet Bills

For many pet owners, rising vet costs aren’t just a financial inconvenience—they’re a barrier to accessing essential care. Higher fees have a knock-on effect on pet welfare, with some owners delaying or avoiding visits altogether due to cost concerns. Delayed treatment can lead to worsening health issues and, in some cases, heartbreaking decisions to surrender pets to charities or shelters when owners can no longer afford care.

Pet insurance, which is supposed to alleviate some of these costs, isn’t immune to the problem either. Insurance premiums have seen sharp increases—up 21% as of March 2024—partly due to rising veterinary fees. For many households, insurance is now becoming unaffordable, adding another layer of financial stress.

What Could the CMA’s Investigation Change?

The CMA’s upcoming report is expected to recommend changes aimed at promoting competition and transparency. Here are some potential outcomes:

1. Clearer Pricing Structures: Practices may be required to publish core prices, empowering pet owners to compare costs and make more informed choices about their pet’s care.
2. Regulatory Reforms: The investigation could trigger broader changes in how veterinary businesses are regulated. Currently, the Veterinary Surgeons Act 1966 (which governs individual vets) doesn’t address business-level regulations—a gap that may need addressing.
3. Support for Independent Practices: Measures could be introduced to protect smaller, independent clinics, which often struggle to compete with larger corporate groups. This would ensure that pet owners continue to have a diverse range of options.
4. Fairer Competition: Policies may be implemented to prevent excessive internal referrals and ensure that pet owners have access to external specialist options when needed.

Striking the Right Balance

While reforms are necessary, it’s important to remember that running a veterinary practice involves significant costs—from staffing and medical equipment to maintaining high standards of care. Corporate practices are often painted as purely profit-driven in media discussions, but the reality is more complex. Rising overheads, staff shortages, and advancements in medical technology have all contributed to the increased cost of veterinary care across the board.

Corporate ownership has also brought some benefits to the sector, which are often overlooked in the wider conversation. With their larger scale, corporates can invest in advanced diagnostic equipment, staff training, and specialist services that may be out of reach for smaller practices. Additionally, many corporate practices offer structured career development pathways for veterinary professionals, which can help with retention in a sector struggling with staff shortages. The key lies in balancing these benefits with the need for transparency and fair competition.That said, there is room for improvement. Practices could adopt more pragmatic approaches to treatment by balancing high-quality care with affordability. For example, some practices have implemented fixed pricing or subscription models to help clients budget for their pet’s care. However, as the CMA report will likely highlight, a one-size-fits-all solution doesn’t exist. Instead, a balanced approach that considers both the financial needs of pet owners and the viability of veterinary businesses will be key.

What Pet Owners Can Do Now

While we wait for the CMA’s final recommendations, pet owners can take a few proactive steps to navigate the current challenges:

• Ask for Detailed Cost Estimates: When booking appointments or discussing treatment plans, ask your vet for a detailed estimate, including any possible additional costs.
• Shop Around for Services: If your practice doesn’t publish prices online, call and compare costs with other local clinics.
• Review Insurance Policies Carefully: Make sure your pet insurance plan covers the treatments your pet is most likely to need, and check if there are limits on specific conditions.

Final Thoughts

The CMA’s investigation into the veterinary sector is a long-overdue examination of rising costs and the role of corporate ownership. As a vet who has spent over two decades in the charity sector, I’ve seen firsthand how unaffordable care can devastate families and pets. While change won’t happen overnight, this inquiry has the potential to bring much-needed reforms that could improve access to affordable veterinary care—and ultimately, the welfare of pets across the UK.

Stay tuned for further updates as the CMA releases its findings. If you want to dive deeper into this topic, be sure to listen to my podcast episode, Are Big Corporates Driving Up Vet Costs? Inside the CMA’s Vet Sector Inquiry, where I explore this issue in more detail and share my professional insights. This could be a pivotal moment for the veterinary profession and pet owners alike.