Pros and cons of veterinary consolidation for staff and clients

When it comes to independent practices going corporate, veterinary staffers and clients can find themselves barraged with anecdotes regarding how that change will impact them. Rumored flubs, along with legitimate missteps, retold and reposted over many years seem true, even if they never were or even if they don’t reflect improvements and current realities.

That said, change is hard.

Here’s what those who’ve been through it recently and those who’ve guided many practices through it have to say about the process, pros, and cons.

Nuances and caveats

First, these transitions from local/indie to corporate ownership come with nuances and caveats. They are not all the same, even if purchased by the same company. Therefore, think of the pros and cons below as what’s possible, rather than absolutes for all staff and clients in all situations or in all regions.

According to Win Lippincott, COO and senior partner with the Ackerman Group,  “If the regional operations person is exceptional, you could transition over to a company that has the worst reputation. [People] just assume they’re run by demons. If it’s an exceptional regional operations person, you’ll have a great transition. And, on the flip side, it could be the company that wins all of the best-employer-of-the-year awards, but if you’ve got a dud of a regional person, then it’s going to be miserable.”

In addition, some of the cons that people tie directly to corporate consolidation may not have a one-to-one relationship. For example, Len Podolsky, cofounder and CEO of EverVet Partners, points out that “levels of turnover in the veterinary profession are relatively high as a baseline, particularly amongst staff—technicians, CSRs.”

That’s why corporate groups tout systemic training and leadership development for non-DVM staffers. Podolsky says, “I think historically, the industry has probably under-invested in that talent pool.”

Also, especially in the current economic climate, it’s at least a little unfair to blame price increases solely on consolidation and private equity ownership.

As for clients, many do not know a veterinary hospital is under new ownership right away, if ever. Plus, younger pet owners may only have experience with corporate-owned practices, so they have nothing else to compare to. More experienced clients, however, often catch on as changes seep into their pet care experiences and challenge their long-held expectations.

Roy Jain, co-founder and COO of Blue River Pet Care, says, “We really strive to make sure clients don’t notice any differences post-sale. We don’t make any formal announcements about the ownership change. We don’t even change the practice name or any of the branding. We believe a client’s main concern is receiving the same great care and service they’ve come to know and trust. It’s the same local hospital team providing exceptional (and potentially enhanced) care for pet companions.”

Potential pros for veterinary staff

As mentioned above, these are all potential pros, meaning that an independent practice going corporate may experience some of these positive changes. That all depends—often significantly—on the quality of leadership in the hospital and at the corporate level.

Greater structure, fairness, and support from human resources

That’s good news for anyone struggling with favoritism, bullies, or cliques.

More professional development and continuing education

For technicians, that might mean everything from clinical skill-building to ramping up for licensing/certification or specialization. For others, that might be training for inventory, client education, client communications, and even practice management roles.

Maintained or improved PTO policies and staff schedules

At least in the early stages of the transition, consolidators shy away from yanking popular policies, expanding hours of operation or changing staff schedules. Podolsky says that unilateral changes would be a “fantastic way to lose doctors and staff.”

Feature-rich payroll and HR systems

This is a plus for some practice managers who couldn’t afford robust tools.

Better health insurance benefits with lower premiums

When Banfield bought a charter practice, Tasha Wurm, who has worked in the field since high school, says, “My benefits dropped over $500 a month for just my premium. That was huge as a single mom.”

More agile and faster improvements

Corporate teams add bandwidth and strategy for implementing more new ideas faster—at least in theory. (See related con below.)

Data-driven safety and standardization protocols

The scale of some corporations with many high-volume practices allows for data collection and analysis that drives protocol evolution for both patient and staff safety.

Bigger professional networks and collaboration

Larger, regional, or national operations often come with built-in networks for case brainstorming or professional connections.

Investments in equipment and technology

Corporations often arrive with bigger budgets for equipment and tech upgrades, but when they’re buying for multiple locations, that may also increase their negotiating power, allowing them to get even more for their money.

Deep inventory

Because they buy in such bulk, larger corporations often enjoy better access to certain medications, even in times of shortages or supply-chain disruptions.

AI integration that solves earlier problems

Lippincott believes that some client communication mistakes that creep in at scale will soon be fixed by planned, bespoke AI tools. He imagines tools that can scan a patient’s entire medical record and prevent things like inappropriate or unnecessary reminders. For instance, caregivers for a dog in hospice care don’t need an email about the importance of a dental cleaning or upcoming wellness exam .

Potential cons for veterinary staff

Right-sizing, or reorganization, of staff and other team exits

When a practice is selling—to corporate or another independent owner—it’s not unusual for owners to keep that information to themselves until the sale is close to final. After all, the doctors working there are part of the value, and changing to new ownership of any kind usually requires doctors to sign a new contract, which may or may not be in line with their previous contract. Still, that concern about new owners and a new contract tends to ramp up even more when a move to corporate is involved due to the intense feelings many veterinary professionals hold about corporate ownership. The loss of doctors can then, very easily, cause leadership to eliminate technician and other roles that aren’t needed when there are fewer doctors.

Staff pay may not improve

Lippincott explains that corporate buyers have “less tolerance for underperformers” and devote greater attention to market rates for staffing. He says, “The corporate is going to look around and try to win the talent with the lowest amount that they need.”

Gentry feels that even corporates don’t pay what CVTs are worth. In part, she believes it’s because they often do pay DVMs better and need to make up the difference elsewhere.

Overloaded with top-down initiatives

Gentry felt extreme pressure to implement many new things every month such as new AI receptionist, new phone system, frequent price increases, etc.

Changes to practice philosophy

Due to focus on preventive care, including relentless forward booking, some practices have less time to squeeze in urgent/emergency cases or stop taking them entirely. Or, perhaps more commonly, corporate leadership may mandate that no cases be turned away in order to increase revenue generation. In either instance,  staff may struggle with a new practice philosophy that’s handed to them by individuals not working in that particular practice, and can face pushback (even wrath) from established clients who notice and dislike the changes.

Team culture shifts and new standards or processes

While many consolidators tout medical/clinical independence for case workup and management, other expectations for how the practice works can be more rigid. Wurm says that such rules and protocols for how the work gets done can feel restrictive for those who don’t enjoy or value structure.

Formulary and purchasing constraints

Corporations sometimes limit veterinary inventory and pharmacy purchases to specific manufacturers, distributors, and generics.

Results-/money-driven pressures

If new corporate owners expect and reward results other than medical ones, staff may feel that clinical, client, and patient outcomes suffer.

High-volume models and changes visible to clients

More and shorter appointments per day can easily get off schedule, leaving clients and pets waiting in crowded lobbies and staff dealing with the stress and mood fallout for everyone.

Bearing the brunt of client frustration with changes

After the ownership change, Wurm says, “I have never been treated so poorly by clients in my entire life… I’ve had fingers pointed in my face. I have been sworn at. I have been yelled at.”

Change fatigue

Any type of change is tough, so a bigger, longer-term transition to new systems and processes takes a toll.

Potential pros for veterinary clients

Keeping longtime practices in communities, especially in more remote locations

In some cases, a corporate buyer is the only option. Without them, communities lose access to local veterinary care when practices shutter.

Comprehensive wellness plans or memberships for preventive care

Clients who make the most of wellness plans typically save money over á la carte payments for routine care.

Better contact list management that provides a more robust reminder process

A more comprehensive reminder process, paired with excellent contact list organization, can help practices keep better tabs on when reminders need to go out—even when a pet has only been seen for sick visits. This can help these families stay on track with important preventive care, like rabies vaccines. After all,  a missed reminder can result in devastating scenarios for pets and families alike in the case of something like rabies exposure or preventable infections.

Ease of scheduling, often allowing for in-app or online appointment booking

Rather than calling and waiting on hold, using on-demand tech tools is faster and more flexible for busy clients. Of course, independent practices can certainly utilize this functionality as well, but corporate practices often have these services established and in the budget already, making those tools more likely to be implemented in those clinics.

Access to integrated online pharmacy, telehealth and other services

Corporate-owned practices may be part of an all-inclusive eco-system, as the Chewy/Modern Animal Inc acquisition announcement noted. This likely ramps up the pressure on other consolidators to add more services and tools, which could be good for clients who value an all-in-one model.

Regional or national access to consistent care

This is useful for frequent travelers, including in the RV and van-life world—though strict rules about VCPR may require an in-person exam at any new locations, even for things like medication refills.

Clinical equipment and services updates

Clients gain access to improved services onsite from capital investments in new equipment.

Cosmetic improvements

While skeptics (including this writer) balk at the benefit to clients of practices getting visual facelifts from corporate buyers, Lippincott explains that consumers do subconsciously feel a sense of comfort and confidence from improved aesthetics.

Potential cons for veterinary clients

Price increases, sometimes significant

Pet parent Mary Cole says, “Our local vet sold out to a corporation, and prices went up 200%. We now take the dog further away [7 miles] to stay halfway reasonable.”

Red tape and revamped processes

Longtime clients may get cranky about new required forms, pre-payments, or revamped processes for things like checking in for surgery or procedures.

Difficulty cancelling wellness plans or memberships

Clients may be required to contact corporate HQ to cancel subscription or membership plans, making them feel like they’re getting the runaround.

Loss of long-term veterinary relationships

Longtime clients, especially, may feel any staff or doctor attrition as huge clinical and emotional losses.

Lack of consistency in who clients see

In-house pressures to fill every practitioner’s schedule may result in clients being told they cannot see their usual veterinarian, and instead they’re scheduled with a doctor who has more availability.

Feeling more transactional

As people and processes shift, clients may feel less of a connection to the practice—moving pet care from a partnership to a series of transactions.

Changes to how the business operates

Any new owner may come in and make big changes to how a practice operates, which always has the potential to upset clients. In the case of corporate consolidation, there can be a stronger focus on services that generate revenue, which does not always align with the needs of existing clients.

Increased scrutiny

Lippincott argues that changes in the profession, including corporate consolidation, have triggered increased scrutiny by veterinary professionals and clients alike, including of things that have long existed in independently owned practices, too.

A veterinarian based in Ireland, who requested anonymity, sums it up like this: “My own sense is that corporates are used as a scapegoat… It’s just not as simple as ‘corporates big, bad, and expensive’ and ‘independents small, good and better value.’ That’s a lazy oversimplification, but it’s very common just now.”

Related reading:

The growing tension between clinical expertise and corporate consolidation in veterinary medicine –JAAHA

Photo credit: satamedia/iStock via Getty Images

Disclaimer: Trends™ content is meant to inform, educate, and inspire by providing an array of diverse viewpoints. Any content published should not be viewed as an official stance, position, or endorsement by the American Animal Hospital Association (AAHA) or its Board of Directors.