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FTC acts against private equity firm’s acquisition of veterinary clinics

ftc.gov

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Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#91

Post by whimsicalism »

lotsofpulp wrote: post #43
Xeoncross wrote: post #24

Earlier quoted context omitted.

Healthcare was more affordable back when individuals payed for it. The problem was that some could not, so we introduced insurance. At this point no one can afford it anymore without insurance. So our fix for one problem created a new problem.

There is healthcare, like a broken arm. And then there is healthcare, like diabetes, hypertension, stroke, obesity, heart disease, arthritis, old age, and end of life care. The former is an insurable event, with low probability and relatively small costs. The latter is inevitable and basically not insurable at any price that 95% of people can afford. The question is really how much of society’s resources does society…

I think it is really just the high probability stuff that isn't insurable. Low probability high cost things should also be covered by catastrophic insurance.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#92

Post by jakear »

ensignavenger wrote: post #55
AlotOfReading wrote: post #21

Earlier quoted context omitted.

My partner works in this industry and in fact has friends that are affected by this merger. While the FTC can and does have the ability to do many things simultaneously, the current situation in the vet industry is dire . Corporate vets are more profitable (through price-gouging), have a virtual stranglehold on increasingly limited labor pools, and are pretty much the only ones that can afford to invest in specialty…

Could you explain this more? If the corp vets are price gouging, why are consumers choosing them over the smaller vets?

There’s no element of choice. Calling around my local vets every one is 3+ month wait for new patients. Even existing patients have week or longer lead times.

But of course if you choose Banfield (PE shitshow), they’ll see them same day (drop off in the morning, pet waits in kennel surrounded by other sick dogs all day until a vet is free, pet goes back to kennel to wait until end of day). The charge is significant, but the pets waiting around locked up all day is what bothers me more. At checkout they’ll of course hit you with the “wasn’t this so expensive? You should buy our health insurance plan!”

Compare this to the vet in my parents town that will also see same day, but I walk into the exam room with the pet, meet face to face with the vet, and stay with the pet for the majority of the operation. And pay less in the end.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#94

Post by lordnacho »

banannaise wrote: post #84
legitster wrote: post #67

Earlier quoted context omitted.

I worked with people who did (human) clinic roll ups. Part of the issue at hand is that doctors and physicians are notoriously bad businesspeople. So once they build up a big enough practice, a lot of them will jump on the chance to sell the side of the business that they hate to a management firm.

The inevitable march of capitalism: experts in every field are gradually relieved of their decision-making power by experts in finance, until finance guys control everything.

But you can have capitalism without financialization.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#95

Post by [deleted] »

munk-a wrote: post #36
markovbot wrote: post #16

Earlier quoted context omitted.

> One wonders what the Private Equity firm's intention was here. no, i don't think anyone's wondering that. private equity firms have one purpose and one purpose only.

I guess it might be fairer to then say "I wonder why nobody says out loud that such an acquisition will definitely lead to a decline in service for consumers".

[deleted]

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#96

Post by whimsicalism »

PragmaticPulp wrote: post #61

Vet clinics became very popular private equity targets recently. One of the people I know in PE described their profit margins as being surprisingly high even before PE roll-ups. They said that some PE firms were on a mission to acquire all of the vet firms in metro areas and then drive prices up even further because the demand is so inelastic. There was a secondary rush where people were trying to acquire vet clinic…

This is how markets function - rising profits for vets will encourage more providers to enter the market.

e: Sorry, sometimes forget what kind of science denialism is cool now. Climate denial out, economics denial in.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#97

Post by samstave »

jjtheblunt wrote: post #72
samstave wrote: post #52

Earlier quoted context omitted.

BlackStone Vangauard Etc. There have been COUNTLESS videos about the above and how much they own. These are the monopolies we should be going after.

What? They're not monopolies.

Is the Fed not a monopoly on your FIAT American Note? Just because they have "12 independent 'Member Banks'?

You're understanding of a monopoly is outdated. Plus, you're likely to knee-jerk with a "Thats not the defenition of a monopoly!"

Cool get all semantic on the third grade defenition of an insanely nuanced issue.

Monopoly in the dictionary sense is the same as a fucking sound-bite from the news on a highly complex nuanced global issue that takes one to have decades, and in some cases centuries, of input factors to understand the nuance.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#98

Post by SteveGerencser »

PE firms have a horrible track record at doing anything other than maximizing revenue and profit without regard to any other issue. A quick look at what they have done to the motorized wheelchair industry makes that very clear. Wait times for service in DRM enabled wheelchairs can be 4 weeks or more. The thought of your only means of mobility being taken from you for a month because profit comes before service is terrifying.

Where I live we are already limited in our vet options and this will make it worse as they continue to gobble up small clinics.

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#99

Post by jacksnipe »

AlotOfReading wrote: post #77
ensignavenger wrote: post #55

Earlier quoted context omitted.

Could you explain this more? If the corp vets are price gouging, why are consumers choosing them over the smaller vets?

Clinics are facing severe labor shortages. It doesn't matter what the demand is, because they have a limited supply of veterinary care to give. My partner's clinic recently became corporate-owned because they simply could not hire new vets to be able to take new clients. Any days off any vet took had to be covered by one of the others on their "weekend" or the clinic would be forced to shut down. Like other forms of…

But why can’t local clinics get new vets? Because they can’t pay them enough, because they don’t price gouge?

Re: FTC acts against private equity firm’s acquisition of veterinary clinics

#100

Post by bombcar »

eatsyourtacos wrote: post #89
ensignavenger wrote: post #55

Earlier quoted context omitted.

Could you explain this more? If the corp vets are price gouging, why are consumers choosing them over the smaller vets?

>why are consumers choosing them It's interesting that most people who like to defend the free market act as if consumers actually have choices most of the time. That's just simply not the case nearly all the time.. or it's a complete illusion of choice. Especially in any rural/smaller suburban area (of which the US predominantly is). It's not as if you have 1000 choices for everything around. That's only in large ur…

Yep, and even the places where you have two vets, you dig in and find they're both owned/employed by the same company.

In really rural areas, you find vets who will "work off the clock" for cash payments if they know you well, to cut out the company.

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