The Competition and Markets Authority (CMA) has published an overview of its emerging views about how the veterinary services market is working.

The overview starts with the CMA noting how it has had significant dealings with many vets and nurses from different practices and acknowledging their dedication and commitment to owners and their animals. 

Nevertheless, the CMA has identified various areas of concern about the state of the marketplace:

  • The lack of pricing information available to consumers.
  • 57% of owners either not being given price information before non-routine treatment, or not being offered alternative treatment choices.
  • Of those pet owners who expressed a preference for independent practices, only a minority (36% or less) were aware that their practice was owned by a corporate.
  • Only 18% of owners take price into account when choosing a practice. Most pick the nearest, or one based on personal recommendation.
  • Owners don't tend to switch practices, even when they might get a better price.
  • Treatment prices have increased by 60% between 2015 and 2023, compared to general inflation for services of 35%, and an increase in vet salaries of 20-34%
  • 38% of owners don't know they can get a prescription elsewhere
  • 6% of areas are served by only one or two practices, leading to a lack of choice
  • There is sometimes a limited choice of referral services
  • Practices have little choice over which OOH provider they use, which may inflate prices
  • Consumers may be being offered more complex higher cost services (treatment) without being given the option of cheaper, lower cost alternatives which may even be better for animal welfare.
  • Veterinary regulation does not give sufficient consideration to consumer issues: vet business owners and managers have considerable influence on pricing, but are not regulated.

The CMA says it will publish three further papers in the spring, one sharing its analysis of treatment and pricing data from two large insurance companies, another in which it will lay out its proposed remedies to the concerns it has raised, and a final one analysing the profitability of veterinary businesses. 

https://www.gov.uk/cma-cases/veterinary-services-market-for-pets-review#working-papers 

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