PetVet Care Centers
Network of veterinary hospitals across North America.
PE-OWNED
Acquired by KKR2019-01-01
What Made It Great
Exceptional veterinary care with local practice feel.
What PE Will Likely Do
Reduction in nursing staff and replacement of registered nurses (RNs) with lower-cost licensed practical nurses (LPNs) or nursing aides
Sale and leaseback of veterinary hospital real estate to extract equity for investors
Aggressive upcoding of billing to maximize reimbursements, potentially leading to over-diagnosis and over-treatment
Elimination of less profitable but essential veterinary services like 24-hour emergency care, specialized surgeries, and preventive wellness programs
Increased management and consulting fees charged to PetVet Care Centers, reducing resources available for direct patient care
Expected Timeline
“0 to 6 months months”
Announcement of 'optimization' initiatives, with potential leadership changes
“6 to 12 months months”
Staffing reductions begin, with longer wait times and less personalized attention for pet owners
“12 to 24 months months”
Noticeable decline in service quality, with fewer specialty services, reduced appointment lengths, and delayed equipment maintenance
“24 to 36 months months”
Potential closure of underperforming or less profitable veterinary hospitals, leading to reduced access to care for pet owners
“36+ months months”
Possibility of bankruptcy or a fire sale to another operator, further disrupting continuity of care for patients
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, such as longer wait times, reduced specialty services, or less personalized attention from veterinary staff
Monitor for any increases in veterinary fees or billing practices that seem questionable or designed to maximize profits
Consider alternative veterinary providers in the area that may not be under private equity ownership, to ensure your pet receives the highest quality of care
Advocate for the preservation of essential veterinary services and the maintenance of high-quality standards, even as the company undergoes changes
Alternatives
Community-focused healthcare
Integrated managed care consortium