Key facts
- Pet owners may be unknowingly overcharged by private equity-owned veterinary practices.
- The CMA has relaxed rules requiring multinational companies to disclose ownership of vet practices.
- Pet owners pay 16.6% more on average at large vet groups compared to independent practices.
- Over 60% of veterinary practices are owned by six major groups, many linked to private equity.
- New rules will allow companies to use brand names or original practice names for disclosure, rather than ultimate parent company names.
- The CMA asserts that brand names will ensure clarity for pet owners regarding practice ownership.
Pet owners are at risk of being overcharged by private equity firms that have acquired local veterinary clinics, following a change in disclosure rules by the Competition and Markets Authority (CMA). The CMA's investigation into the veterinary market revealed that a lack of transparency and competition has led to higher prices, with pet owners often unaware that their local practice might be owned by an international private equity company.
Data indicates that pet owners pay, on average, 16.6% more at large veterinary groups than at independent practices. The overall market is valued at £6.3bn. Currently, more than 60% of veterinary practices are owned wholly or partially by six major groups, including those backed by private equity investors like CVS, Pets at Home, Medivet, IVC, and VetPartners, as well as Linnaeus, which is part of Mars Petcare.
While the CMA and government ministers had previously proposed capping pet medicine prescriptions at £21 and increasing ownership transparency, the Progressive Veterinary Association (PVA) has raised concerns. The PVA argues that the CMA has softened the wording of new rules, allowing multinational companies to obscure their ownership. Instead of naming the ultimate corporate owner, practices may be allowed to use their brand name or the name of the original independent practice.
Dr. Iain McGill, a director at the PVA, stated that this change permits large corporations to hide their control over local vet practices, potentially misleading pet owners who often prefer independent clinics, which are found to be cheaper on average. The PVA believes that accurate ownership information is crucial for informed consumer choice and maintaining competition.
The CMA, however, maintains that the changes will ensure pet owners know whether their local practice is part of a national group or locally owned. They argue that using recognizable brand names on signs and online will achieve this clarity, preventing the "unacceptable situation" of people believing they are using a local practice when it belongs to a larger entity. The CMA stated that its proposals were supported by a range of stakeholders and that the decision was made after extensive consultation.