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CareVet

healthcare
PE-OWNED

Veterinary practice support organization providing business services to independent animal hospitals.

PE-OWNED

Acquired by Bain Capital2021-08-01

View PE Firm Profile

What Made It Great

Veterinarian-friendly support model maintaining practice culture while improving efficiency

What PE Will Likely Do

Reduction in the number of veterinarians and registered veterinary technicians, leading to longer wait times and less personalized care for patients

HIGH LIKELIHOODBased on: Bain Capital's track record of operational restructuring and management changes in acquired companies

Increased use of less-qualified staff like veterinary assistants to perform tasks traditionally done by RVTs, potentially compromising quality of care

HIGH LIKELIHOODBased on: The high frequency of common PE tactics in the healthcare industry, particularly staffing reductions, real estate sale-leasebacks, and billing upcoding

Sale and leaseback of veterinary hospital real estate, leading to increased overhead costs that may be passed on to consumers through higher service fees

HIGH LIKELIHOODBased on: The timeline of impacts seen in similar past cases involving PE-backed companies in the retail and media industries

Aggressive billing practices and 'upcoding' of procedures to maximize reimbursements, leading to higher out-of-pocket costs for pet owners

HIGH LIKELIHOODBased on: The timeline of impacts seen in similar past cases involving PE-backed companies in the retail and media industries

Elimination of less profitable but essential services like emergency care, senior pet wellness, and specialized treatments

HIGH LIKELIHOODBased on: The timeline of impacts seen in similar past cases involving PE-backed companies in the retail and media industries

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcements of 'optimization' initiatives and leadership changes, but no immediate impacts felt by consumers

6-12 monthsYOU ARE HERE

6 to 12 months months

Gradual staffing reductions and service reviews begin, leading to slightly longer wait times and less personalized attention

12-24 months

12 to 24 months months

Noticeable declines in service quality, with longer wait times, less time spent with veterinarians, and limited access to specialized services

24-36 months

24 to 36 months months

Significant issues emerge, including department closures, reductions in operating hours, and potential quality scandals

36+ months

36+ months months

Potential bankruptcy, widespread hospital closures, or a fire sale to another operator, leading to major disruptions in pet care access and quality

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be vigilant for any changes in the quality of care, staffing levels, or availability of services at your local CareVet-affiliated animal hospital

  • Monitor your veterinary bills for any signs of upcoding or unexpected charges, and be prepared to advocate for fair and transparent pricing

  • Stay informed about the ongoing status of CareVet and consider switching to a locally-owned or non-PE-backed veterinary practice if the quality of care declines significantly

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

"CareVet is now PE-owned. Here's what that means for you."