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Shining a light on PE ownership.

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PE

PetVet Care Centers

healthcare
PE-OWNED

Network of veterinary hospitals across North America.

PE-OWNED

Acquired by KKR2019-01-01

View PE Firm Profile

What Made It Great

“

Exceptional veterinary care with local practice feel.

What PE Will Likely Do

Predictions

Reduction in nursing staff and replacement of registered nurses (RNs) with lower-cost licensed practical nurses (LPNs) or nursing aides

HIGH LIKELIHOODBased on: KKR's track record of cost-cutting, debt loading, and operational changes that prioritize financial returns over quality of care

Sale and leaseback of veterinary hospital real estate to extract equity for investors

HIGH LIKELIHOODBased on: The industry playbook for private equity acquisitions in the healthcare sector, which frequently involves the tactics outlined above

Aggressive upcoding of billing to maximize reimbursements, potentially leading to over-diagnosis and over-treatment

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36, indicating that PE ownership is likely to be detrimental to the end-user experience

Elimination of less profitable but essential veterinary services like 24-hour emergency care, specialized surgeries, and preventive wellness programs

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36, indicating that PE ownership is likely to be detrimental to the end-user experience

Increased management and consulting fees charged to PetVet Care Centers, reducing resources available for direct patient care

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36, indicating that PE ownership is likely to be detrimental to the end-user experience

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcement of 'optimization' initiatives, with potential leadership changes

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing reductions begin, with longer wait times and less personalized attention for pet owners

12-24 months

“12 to 24 months months”

Noticeable decline in service quality, with fewer specialty services, reduced appointment lengths, and delayed equipment maintenance

24-36 months

“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

“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

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

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

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"PetVet Care Centers is now PE-owned. Here's what that means for you."