CMA proposes major changes to veterinary industry
The proposed remedies could negatively impact all veterinary practices.
The Competitions and Markets Authority (CMA) has published the latest provisional findings of its investigation into the small animal veterinary care sector.
Its findings reveal that pet owners are paying 16.6 per cent more on average at the large corporate groups compared to independently owned practices.
In documents shared today (15 October), the CMA says that at least three of the large groups are raising prices faster at their owned practices compared to price increases at independently owned practices. This is leaving their profits higher than they would be if the competition was working well.
The CMA also declared RCVS’ current regulatory system as ‘not fit for purpose’. It currently regulates individual veterinary professionals, but does not regulate businesses – despite many of these being owned by large corporate groups.
However the CMA’s proposed remedies, shared as a ‘far-reaching package of 21 measures’, will impact all veterinary practices.
The remedies will require all practices to publish comprehensive lists detailing the prices of different services. This would also mean veterinary professionals must estimate price information ahead of treatments, putting prices in writing for treatments over £500 and itemising bills.
Pet care plans would similarly need to be accompanied by a full price breakdown.
The CMA remedies steer pet owners towards online sites for their medication, with veterinary professionals pushed to advertise ‘savings’ to be made by purchasing through online competitors. In cases where medicine is needed frequently, veterinary professionals would be automatically be required to provide a written prescription, with the price for doing so capped at £16.
The impact of online retail on brick and mortar businesses has been substantial and this will no doubt bring challenges to all veterinary practices.
The RCVS would also be asked to adapt its Find a Vet service into a price comparison website, informed by price lists published by every practice. This would see clients encouraged to mainly compare practices based on cost, rather than considering reviews and client service provided.
The provisional findings will now be scrutinised by large corporate groups and veterinary membership bodies, including the Federation of Independent Veterinary Practices (FIVP). Parties must submit their feedback by Wednesday, 12 November, with some groups also attending hearings with the CMA inquiry group.
The British Veterinary Association (BVA) has already expressed concern with how the CMA’s recommended measures could impact how services are delivered.
Rob Williams, BVA president, said: “In particular, we need clarity on the proposed introduction of comprehensive price lists, because how vet care is delivered is varied and complex and unless the CMA gets this right, it could end up creating greater confusion for consumers, which in turn could have a negative impact on animal welfare.”
Rita Dingwall, chairperson of the FIVP, said: “FIVP welcomes some aspects of the CMA report but fundamentally believes that the net cost of veterinary care will increase as more of pet owner's costs are transferred to online pharmacies.”
The full findings can be found on the CMA investigation page.
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