Watchdog orders investigation into vets’ prices and profits

The Government’s competition watchdog is to launch a full market investigation into how the veterinary industry operates, with concerns that pet owners are overpaying for vet bills and vets are profiting from a lack of choice.

The Competition and Markets Authority (CMA) announced the full investigation into the veterinary sector after an initial review prompted tens of thousands of pet owners to get in touch with their views.

The CMA investigation could end up imposing a cap on vets’ fees and even force some of the bigger vet chains to sell branches to create more competition.

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CMA chief executive Sarah Cardell has announced what will essentially be one of the authority’s biggest investigations to date into how the industry operates, how much vets charge, insurance and competition. She said the CMA’s inquiry will look at whether consumers are getting the information they need at the right time to make informed decisions.

It will also look at whether there is a limited range of veterinary businesses in some areas and whether this impacts on pet owners, whether the profits made by veterinary businesses are ‘consistent with expected levels’ in a competitive market and whether veterinary businesses have the incentive and ability to “limit consumer choice” when offering treatments or recommending related services, particularly when they are part of large, integrated groups.

“The message from our working doctors so far has been loud and clear – many pet owners and professionals have concerns that require further investigation,” she said. “I hear from people struggling to pay their vet bills, potentially overpaying for medication and not always knowing the best treatment options available.

“We also remain concerned about the potential impact of sector consolidation and the incentives for large, integrated groups of vets to act in ways that reduce consumer choice. In March, we proposed that a formal market investigation would be the best way to fully explore these concerns and, where appropriate, take direct action to address them. This proposal was overwhelmingly approved by our consultation.

“While we are aware of the acute shortage of staff and difficult working conditions for vets, we believe that a formal market investigation is essential to ensure good outcomes for the millions of pet owners in the UK, as well as professionals working in this sector. The independent inquiry group will continue this investigation and in the meantime we are publishing some advice to help pet owners better navigate veterinary services,” she added.

The British Veterinary Association said it hoped the CMA investigation would highlight the need for reform in the industry. “Veterinarians are proud of the high quality service and specialist medical care they provide to UK animals and their owners,” said BVA President Dr Anna Judson.

“While the fees reflect the investment required to keep practices financially viable and open, we recognize that more can be done to improve customer choice and vet teams are already taking steps to address the specific concerns of the Competition and Markets Authority regarding transparency of fees and practice ownership.

“While the CMA carries out its investigation, it is important to remember that vets genuinely care for and prioritize the health and welfare of animals – it is often their motivation for entering what is a highly pressured profession.

“Since the CMA first announced its review, vet teams in practice have found themselves on the receiving end of some really unpleasant, often abusive behaviour. This is unacceptable and we urge everyone to remember that vets are human and are often not responsible for pricing structures within a practice,” she added.

“The Competition and Markets Authority has recognized that urgent reform of the outdated Veterinarians Act is needed and regulation of veterinary practices should be introduced, a change the BVA has consistently campaigned for. The legislation is currently not fit for purpose and is failing both veterinary teams and clients. We hope the CMA’s market inquiry will further interrogate the need for reform and support our calls for urgent cross-party support for action and inclusion in party manifestos as we head towards the general election,” she added.