Aow revived for a new generation, the classic television series All Creatures Great and Small presented an unabashedly romantic account of life in a 1930s rural veterinary practice. Unfortunately, in a sector corporatized at a dizzying pace, the modern reality is much less uplifting.
In South Wales, vets, nurses and support staff working for surgeries owned by the VetPartners group have passed extended a continuous strike until the end of this month. This unprecedented industrial action was prompted by anger over low wages which are reportedly driving some workers to food banks. There is also widespread concern that profit-driven calculations by corporate giants are driving up customer costs too high.
In May the Competition and Markets Authority (CMA) confirm that there would be a formal investigation into the sector. It followed a call for evidence on the industry, which led to an extraordinary amount of disillusioned responses from both vets and pet owners. The inquiry will focus on the consequences for consumers of the growing market dominance of six major chains, which now control 60% of an industry estimated to be worth £5 billion a year. In 2013, 89% of practices were independently managed.
Private equity firms have inevitably played a major role in this corporate transformation of the sector. As in other areas, the inevitable consequence of routinely employed expansion is a single-minded determination to drive down costs and a relentless dedication to the bottom line. Some savings are achieved through sheer economies of scale. But anecdotal evidence suggests that a more ruthless, mercenary ethos may have been imposed on some operations that have retained their old name but are now run by one of the big six.
An investigation by the Guardian earlier this year found increasing concern about the difficult sale of increasingly expensive services, and frustration about a lack of transparency in prices. The CMA’s chief executive, Sarah Cardell, has said that last year’s call “heard from people who are struggling to pay for vet bills, who may be paying too much for medicine and don’t always know the best treatment options available to them”.
This is a disturbing state of affairs in an industry that should be trusted to deal fairly with people in sensitive situations. People’s devotion to their pets will lead them to make great financial sacrifices on their behalf. Proper regulation is required to ensure that this does not make them vulnerable to exploitative business practices. The often stressful work performed by non-senior staff also deserves to be better rewarded, and recognized as an important contribution to social well-being in a nation of animal lovers.
In the 25 years since practice was ownership opened for non-veterinarians, the scale of the corporate takeover amounted to a cultural revolution. The CMA may ultimately choose to insist on the break-up of dominant market players, and impose maximum prices. What is already clear is that a shake-up is overdue. Most industry regulations date back to 1966 – a world much closer to that of James Herriot’s memoirs than the present. Current levels of dissatisfaction suggest they are no longer fit for purpose.
