The UK’s veterinary sector is under scrutiny from the Competition and Markets Authority as it investigates soaring prices for treatments, with proposed remedies including price caps on medicines and cremation fees.
The Future of Veterinary Services in the UK
The UK’s £2bn veterinary sector is under scrutiny from the ‘Competition and Markets Authority (CMA)’ as it investigates a lack of competition, contributing to soaring prices for treatments. The regulator has outlined changes it is considering, including price caps on medicines, prescriptions, and other services like cremations.
The veterinary sector has undergone significant transformations over the years.
From ancient civilizations to modern-day practices, animal care has become increasingly sophisticated.
The first veterinary school was established in Lyon, France in 1762, marking a pivotal moment in the history of veterinary medicine.
Today, veterinarians employ advanced technologies and treatments to diagnose and treat a wide range of animal health issues.
According to the American Veterinary Medical Association (AVMA), there are over 100,000 licensed veterinarians in the United States alone.
Rising Prices and Lack of Transparency
Prices for treatments have grown by 60% between 2015 and 2023, outpacing inflation of 35% for other general services. This surge in prices has been attributed to a lack of transparency around the cost of treatments and what choices are available to pet owners. The CMA has found that businesses are marking up medicine prices, sometimes by as much as four times the purchase cost.
Treatment costs can vary significantly depending on factors such as location, type of treatment, and insurance coverage.
On average, a hospital stay for treatment can cost between $10,000 to $50,000 or more per day.
Outpatient treatments may be less expensive, ranging from $500 to $5,000 per session.
Insurance plans often cover a portion of these costs, but patients are still responsible for deductibles and copays.
Proposed Remedies
The CMA proposes several remedies to address these issues. Firstly, vets could be forced to create a clear online display of prices for medicines, surgeries, treatments, and out-of-hours help. Additionally, the mark-up charged on pet cremations might be capped, particularly when sold to customers at a vulnerable moment. The watchdog also suggests a comparison website making it compulsory for clinics to inform owners if cheaper options are available.
Corporate Takeovers and Reduced Consumer Choice
The CMA highlights that the sector is increasingly dominated by larger firms, which may reduce consumer choice. Approximately 1,500 vet practices have been acquired by six large corporate groups since 2013. These acquisitions often result in the retention of the name and branding of an independently-owned practice, creating an ‘illusion of competition’ for consumers.
A Shift Towards Greater Transparency
The CMA’s investigation also emphasizes the importance of transparency in the veterinary sector. The regulator aims to ensure that pet owners have access to clear information about treatment costs and options, enabling them to make informed decisions about their pets’ care. By implementing these changes, the CMA hopes to promote a more competitive market and reduce prices for treatments.
Transparency refers to the quality of being clear and open in one's communication, actions, and decision-making processes.
It involves providing accurate and timely information to stakeholders, including employees, customers, investors, and the general public.
Studies have shown that transparent organizations experience improved trust, increased employee engagement, and enhanced reputation.
According to a survey by Edelman, 64% of employees consider transparency as one of the most important factors in their job satisfaction.
A Final Decision Looms
The CMA expects to release a provisional report on its proposed measures in the summer months, with a final decision by November. As the sector undergoes significant reforms, it remains to be seen how these changes will impact the UK’s veterinary services and ultimately benefit pet owners.
