VetCor
Veterinary hospital network supporting pet care practices.
PE-OWNED
Acquired by Welsh, Carson, Anderson & Stowe2017-08-01
What Made It Great
Providing business support to veterinary practices while maintaining local identities.
What PE Will Likely Do
Staffing reductions at veterinary hospitals, with fewer experienced veterinarians and more lower-skilled technicians or assistants
Sale-leaseback transactions of hospital real estate, extracting equity for investors while raising occupancy costs
Aggressive billing practices, with upcoding for higher-reimbursement procedures and diagnoses
Elimination of unprofitable but essential services like 24/7 emergency care, specialty treatments, and preventive wellness programs
Significant management fee extraction, reducing the funds available for direct patient care
Expected Timeline
“0 to 6 months months”
Announcements of 'efficiency' initiatives and leadership changes, with little initial impact on patients
“6 to 12 months months”
Staffing cuts and service reviews begin, leading to longer wait times and less personalized care
“12 to 24 months months”
Noticeable declines in service quality, with higher patient loads, shorter appointment times, and deferred equipment maintenance
“24 to 36 months months”
Potential closure of certain hospital departments or locations, with quality scandals and customer dissatisfaction on the rise
“36+ months months”
Possibility of widespread hospital closures or a fire sale to another operator, significantly disrupting pet care in affected communities
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Research the ownership and financial backing of your local veterinary hospital to understand the potential for service quality changes
Be aware of any announcements or changes in staffing, services, or billing practices at your veterinary provider
Advocate for your local veterinary hospitals to maintain high-quality care and essential services, even if it means higher costs
Consider switching to independent or non-profit veterinary practices that are less likely to prioritize investor returns over patient care
Alternatives
Community-focused healthcare
Integrated managed care consortium