FTC acts against private equity firm’s acquisition of veterinary clinics • Hacker News Board

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

#161

Post by shakes_mcjunkie » Mon, Jun 13, 2022, 7:03 PM UTC

pclmulqdq wrote: post #142

Avicebron wrote: post #129

Earlier quoted context omitted.

what do you mean? That's exactly capitalism, it favors inequality heavily. The Vet made it to the top of the heap, and is now utilizing the PA as an exploitable workforce. Tech example, BigCo A gets first mover advantage, equally good BiggishCo B is a bit behind (for whatever reason), BigCo A leverages their position to prevent B from being able to compete long term - usually by acquisition, they work for us now.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

Licensing can be used to monopolize markets and consolidate private ownership. Licensing isn't inherently bad but it can be used in a capitalist system to increase profits and drive out competition.

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

#162

Post by Jarwain » Mon, Jun 13, 2022, 7:04 PM UTC

pclmulqdq wrote: post #142

Avicebron wrote: post #129

Earlier quoted context omitted.

what do you mean? That's exactly capitalism, it favors inequality heavily. The Vet made it to the top of the heap, and is now utilizing the PA as an exploitable workforce. Tech example, BigCo A gets first mover advantage, equally good BiggishCo B is a bit behind (for whatever reason), BigCo A leverages their position to prevent B from being able to compete long term - usually by acquisition, they work for us now.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

It's not capitalism the same way soviet Russia wasn't communism

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

#163

Post by pc86 » Mon, Jun 13, 2022, 7:05 PM UTC

pclmulqdq wrote: post #142

Avicebron wrote: post #129

Earlier quoted context omitted.

what do you mean? That's exactly capitalism, it favors inequality heavily. The Vet made it to the top of the heap, and is now utilizing the PA as an exploitable workforce. Tech example, BigCo A gets first mover advantage, equally good BiggishCo B is a bit behind (for whatever reason), BigCo A leverages their position to prevent B from being able to compete long term - usually by acquisition, they work for us now.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

Capitalism doesn't become "not capitalism" because practitioners need to be licensed and public safety and/or public opinion demands regulations be put in place.

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

#164

Post by shakes_mcjunkie » Mon, Jun 13, 2022, 7:06 PM UTC

Johnny555 wrote: post #83

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…

Vet clinics become very popular private equity targets recently. Probably because more and more people are buying pet insurance -- our insurance paid nearly $20,000 to Sage for my dog's cancer treatments. I doubt I could afford emergency vet treatments without insurance.

Yes. Pet insurance is an unregulated market and also has to be driving up prices.

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

#165

Post by djmips » Mon, Jun 13, 2022, 7:06 PM UTC

IG_Semmelweiss wrote: post #120

banannaise wrote: post #84

Earlier quoted context omitted.

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.

A veterinarian cannot open a practice without doing a bunch of licensing and spending hundreds of thousands of dollars in education. Meanwhile, the PA next to him has what it takes from years of training but she will never open a vet clinic of his/her own. Thats not capitalism.

People seem to think capitalism == meritocracy.

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

#166

Post by x86_64Ubuntu » Mon, Jun 13, 2022, 7:07 PM UTC

IG_Semmelweiss wrote: post #114

The only answer to this issue (and make no mistake, its happening in medical care for humans too) is to not restrict conpetition. With yields so low, and the stock market still above 2019 highs, PE firms are diving into the few areas of the economy where there is value due to lack of competition and it is also not completely overheated. However, take out the permit and licensing requirements and you would plummet PE…

>...However, take out the permit and licensing requirements and you would plummet PE money pouring in right away.

And you will have a trail of dead pets resembling a slaughterhouse along the way.

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

#167

Post by guelo » Mon, Jun 13, 2022, 7:07 PM UTC

pclmulqdq wrote: post #142

Avicebron wrote: post #129

Earlier quoted context omitted.

what do you mean? That's exactly capitalism, it favors inequality heavily. The Vet made it to the top of the heap, and is now utilizing the PA as an exploitable workforce. Tech example, BigCo A gets first mover advantage, equally good BiggishCo B is a bit behind (for whatever reason), BigCo A leverages their position to prevent B from being able to compete long term - usually by acquisition, they work for us now.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

No idea how an increased number of vets would prevent capital from consolidating this industry.

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

#168

Post by WaxProlix » Mon, Jun 13, 2022, 7:07 PM UTC

shkkmo wrote: post #138

Ericson2314 wrote: post #116

Earlier quoted context omitted.

"financialization" is more a boogieman than a solid concept. More competition (the best interpretation of "de-financialization" I can imagine) is not very solid solution for something like healthcare (or yes pet care) where the demand being inelastic makes "ransoming" easy.

Markets can work fine with inelastic demand if there is adequate information, freedom of choice and proper regulations.

More like, could than can as far as I can see. Markets kick ass under certain circumstances, but in some areas it's almost impossibly hard to achieve those circumstances.

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

#169

Post by stefan_ » Mon, Jun 13, 2022, 7:07 PM UTC

pclmulqdq wrote: post #142

Avicebron wrote: post #129

Earlier quoted context omitted.

what do you mean? That's exactly capitalism, it favors inequality heavily. The Vet made it to the top of the heap, and is now utilizing the PA as an exploitable workforce. Tech example, BigCo A gets first mover advantage, equally good BiggishCo B is a bit behind (for whatever reason), BigCo A leverages their position to prevent B from being able to compete long term - usually by acquisition, they work for us now.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

You have just realized that most actors in capitalism prefer to the rig the game rather than compete.

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

#170

Post by danuker » Mon, Jun 13, 2022, 7:07 PM UTC

WaxProlix wrote: post #158

pclmulqdq wrote: post #142

Earlier quoted context omitted.

It's not capitalism because a licensing cartel artificially keeps the supply of vets low by keeping out qualified PAs and nurses who could handle easy cases.

It's exactly capitalism because concentrations of capital form and end up with a critical mass that controls various aspects of society - in this case licensing. It's also something that's literally happening under capitalism, right now, in very capitalist America.

While I give your argument some merit, i.e. nobody should be able to corner a market, in this case a different concentration of capital keeps the supply low: the Big Higher Ed one, as opposed to Big Vet.