The group welcomed criticism of corporate practices.
The Federation of Independent Veterinary Practices (FIVP) has commended findings released by the Competitions and Markets Authority (CMA) yesterday.
The group, which supports independent practices across the UK, says that the CMA’s report highlights the impact which spreading corporate-owned practices are having on the industry.
Among its five key issues with the sector, the CMA expressed concern about how large corporate groups concentrated local markets, as well as how they used incentives to weaken competition. The authority said that this would reduce the number of business models in some areas, leaving consumers with less choice when choosing their practice.
It also said that corporate practices were restricting consumers’ access to low-cost veterinary care, instead investing in higher-cost treatments.
FIVP said that this is having a ‘devastating’ effect on the veterinary industry, weakening competition and leaving some clients with no choice but to sign up with a corporate group. It said that this is detrimental to both clients and the veterinary profession.
The CMA also found that four out of the six corporate groups were not changing the names or branding of independent practices that they acquired. FIVP commented that this was misleading to pet owners, who may not realise that a practice is corporate owned.
FIVP business development manager Rita Dingwall said: “The spread of corporate-owned, profit-oriented practices across the country will mean that veterinary costs continue to soar.
“This consolidation also increases the practices’ purchasing power, allowing them to negotiate medicine prices which independent practices couldn’t possibly achieve. Independent practices could feel pressured to increase their own prices, as they compete with corporate groups for recruitment and medicines.”
The CMA has since opened a four-week consultation on a proposed Market Investigation into the sector. If agreed, the CMA will investigate this concern further, and will be able to intervene with the market directly.
Ms Dingwall added: “FIVP will continue to support the CMA as it moves onto the next stage of its investigation, and will always stand up for independent practices."
Read FIVP's full statement here.
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