Helaine Olen wrote in The Atlantic about the quiet transformation of veterinary care. You may have noticed that vet bills are high. She blames it on the takeover of large number of independent veterinary practices by private equity. Many once-local vets are now part of big corporate chains.

I see an analogy to privatization in education. Granted, independent vets are private, not public. But I think it’s only a matter of time until private equity invests in charter chains and religious schools. They are a safe investment, backed by a steady stream of government revenue. Private investors will look for ways to cut costs and maximize profits. One obvious path: replacing teachers with computers and AI. Machines don’t care about pensions or healthcare or working conditions.

Olen writes:

As household pets have risen in status—from mere animals to bona fide family members—so, too, has owners’ willingness to spend money to ensure their well-being. Big-money investors have noticed. According to data provided to me by PitchBook, private equity poured $51.6 billion into the veterinary sector from 2017 to 2023, and another $9.3 billion in the first four months of this year, seemingly convinced that it had discovered a foolproof investment. Industry cheerleaders pointed to surveys showing that people would go into debt to keep their four-legged friends healthy. The field was viewed as “low-risk, high-reward,” as a 2022 report issued by Capstone Partners put it, singling out the industry for its higher-than-average rate of return on investment.

In the United States, corporations and private-equity funds have been rolling up smaller chains and previously independent practices. Mars Inc., of Skittles and Snickers fame, is, oddly, the largest owner of stand-alone veterinary clinics in the United States, operating more than 2,000 practices under the names Banfield, VCA, and BluePearl. JAB Holding Company, the owner of National Veterinary Associates’ 1,000-plus hospitals (not to mention Panera and Espresso House), also holds multiple pet-insurance lines in its portfolio. Shore Capital Partners, which owns several human health-care companies, controls Mission Veterinary Partners and Southern Veterinary Partners.

As a result, your local vet may well be directed by a multinational shop that views caring for your fur baby as a healthy component of a diversified revenue stream. Veterinary-industry insiders now estimate that 25 to 30 percent of practices in the United States are under large corporate umbrellas, up from 8 percent a little more than a decade ago. For specialty clinics, the number is closer to three out of four.

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