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National Veterinary Associates

healthcare
PE-OWNED

Veterinary practice management company operating animal hospitals nationwide.

PE-OWNED

Acquired by Ares Management2019-09-30

View PE Firm Profile

What Made It Great

“

Consolidation platform for independent veterinary practices

What PE Will Likely Do

Predictions

Reduction in nursing staff and replacement of experienced RNs with less-qualified LPNs or aides, leading to longer wait times and decreased attention to individual pet needs

HIGH LIKELIHOODBased on: Ares Management's track record of aggressive cost-cutting and workforce reduction tactics in past acquisitions

Sale of veterinary hospital real estate and leaseback arrangements, potentially leading to higher rents and reduced investment in facility upkeep and modernization

HIGH LIKELIHOODBased on: The high frequency of staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts in the healthcare industry under private equity ownership

Aggressive billing practices to maximize reimbursement, including upcoding of procedures and diagnoses, potentially leading to higher out-of-pocket costs for pet owners

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Ares Management's approach, indicating potential harm to pet owners

Elimination of unprofitable but essential services like specialized care for complex or chronic conditions, forcing pet owners to seek care elsewhere

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Ares Management's approach, indicating potential harm to pet owners

Imposition of large management and consulting fees, reducing resources available for direct patient care and leading to a decline in service quality

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Ares Management's approach, indicating potential harm to pet owners

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'optimization' and leadership changes, giving the appearance of improvements

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing cuts and service reviews begin, with some cost-cutting measures implemented

12-24 months

“12 to 24 months months”

Service quality noticeably declines, with longer wait times, reduced attention to individual pet needs, and fewer specialized services available

24-36 months

“24 to 36 months months”

Significant issues emerge, such as the closure of certain veterinary departments or the exposure of quality-related scandals

36+ months

“36+ months months”

Potential bankruptcy, widespread hospital closures, or a fire sale to another operator, leaving pet owners with limited access to veterinary care

Similar Cases

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Envision Healthcare

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US Dermatology Partners

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Hahnemann University Hospital

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Sound Physicians

Summit Partners·2019

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What You Can Do

Take Action

Actions

  • Monitor any announcements or changes made to National Veterinary Associates' services and staffing levels

  • Be alert for signs of decreasing service quality, such as longer wait times, reduced attention to individual pet needs, and the elimination of specialized care services

  • Be prepared to seek alternative veterinary care providers if the quality of care at National Veterinary Associates declines significantly

  • Consider contacting local consumer advocacy groups or regulatory authorities if you observe concerning changes in the quality of care or pricing at National Veterinary Associates

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"National Veterinary Associates is now PE-owned. Here's what that means for you."