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VE

VetCor

healthcare
PE-OWNED

Veterinary hospital network supporting pet care practices.

PE-OWNED

Acquired by Welsh, Carson, Anderson & Stowe2017-08-01

View PE Firm Profile

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

HIGH LIKELIHOODBased on: Welsh, Carson, Anderson & Stowe's track record of cost-cutting and workforce optimization in acquired companies

Sale-leaseback transactions of hospital real estate, extracting equity for investors while raising occupancy costs

HIGH LIKELIHOODBased on: The industry playbook for private equity firms in the healthcare sector, which aligns with the expected tactics for VetCor

Aggressive billing practices, with upcoding for higher-reimbursement procedures and diagnoses

HIGH LIKELIHOODBased on: The inherent tension between maintaining high-quality veterinary care and maximizing investor returns

Elimination of unprofitable but essential services like 24/7 emergency care, specialty treatments, and preventive wellness programs

HIGH LIKELIHOODBased on: The inherent tension between maintaining high-quality veterinary care and maximizing investor returns

Significant management fee extraction, reducing the funds available for direct patient care

HIGH LIKELIHOODBased on: The inherent tension between maintaining high-quality veterinary care and maximizing investor returns

Expected Timeline

0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'efficiency' initiatives and leadership changes, with little initial impact on patients

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing cuts and service reviews begin, leading to longer wait times and less personalized care

12-24 months

“12 to 24 months months”

Noticeable declines in service quality, with higher patient loads, shorter appointment times, and deferred equipment maintenance

24-36 months

“24 to 36 months months”

Potential closure of certain hospital departments or locations, with quality scandals and customer dissatisfaction on the rise

36+ months

“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

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

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