Source: RollingStone
During the Covid-19 pandemic, pet ownership in the U.S. surged, coinciding with rising pet medical costs. Fortune highlighted a key reason: Private equity firms, like JAB Holding Company, have acquired nearly 30% of Veterinary practices. JAB, known for investments in bakery chains and beverage companies, has expanded into specialty and emergency Veterinary hospitals and pet insurance companies, prompting Federal Trade Commission interventions.
Senators Elizabeth Warren and Richard Blumenthal have raised concerns about this consolidation, citing reduced care quality, increased costs, and worsened working conditions for veterinarians. They argue that private equity ownership pressures Veterinary practices to upsell expensive procedures and meet revenue quotas, contributing to a 60% rise in Veterinary service prices since 2014. Warren and Blumenthal’s letter to JAB requests detailed information on acquisitions, revenue, pricing, staffing, and executive compensation, highlighting concerns over corporate practices exploiting pet owners’ love for their animals to drive profits.
Read the full story HERE: https://www.rollingstone.com/politics/politics-news/elizabeth-warren-targets-private-equity-firm-veterinary-offices-1235075465/