271–280 of 299 posts
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…
Earlier quoted context omitted.
If someone recommends "don't do that" and you do that anyway, you can't reasonably blame their advice for being wrong because things went wrong when you did the thing anyway and then justify it with "well, sometimes people don't listen to your advice, so clearly it's not good enough, we really need to do more of the thing you advised against to fix this."
Are you saying that capitalism means completely open, zero regulation, zero licensure markets? Because it absolutely does not. It means (among other things) a competitive market with minimal information asymmetries between producer and consumer. Regulation can at time help this, e.g. requiring information disclosure, or preventing monopolistic practices. Just because a lot of regulations are bad (or enforced poorly)…
But when bad regulations cause bad outcomes, it's pretty weird to focus the blame on the people warning that bad regulations can cause bad outcomes instead of how the regulations are flawed and whether they can be fixed.
Interesting. I'd like to see more action against the financialization of many other industries / domains, like healthcare and even housing, that I feel are not well served by a purely-market driven perspective. One wonders what the Private Equity firm's intention was here.
I hate to be the YIMBY broken record, but we don't have anything like a purely market-driven approach to housing. An important aspect of a functioning market is that supply is allowed to increase in order to meet demand. This isn't the case in the United States because of zoning laws. The housing market is more like the market for rare coins or something than it is any kind of actual market.
Earlier quoted context omitted.
Come on! Navie understanding of the market/society is a virtue. Profit is always bad for public good. The market is just failing everywhere. Captial investment is ruining everything. Downvotes prove you are wrong.
Where is anyone saying that? They are saying Cartels are bad. Artificially capturing the market so you can dictate pricing or can push hard upsells and no longer worry about customer good will because there is no longer an alternative decent vet to deal with is not creating 'public good'.
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…
A free market (scary!) would lower the barrier to entry for proper vets to compete.
But because of rent, labor, and regulatory overhead, you are left to deal with an entrenched and disinterested incumbent.
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 Remove permitting, licensing, and educational requirements from people selling surgical procedures for animals? No thanks. I don't actually see occupational licensing as a bottleneck for a job that requires significant education and training to do properly anyway We don't have a backlog of veterinarians out there who completed all of their years of training bu…
But why should all consumers be forced to overpay for licensed veterinarians?
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.
We didn’t get dirt cheap electronic because some engineer squeeze costs down and competed on price.
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…
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.
Earlier quoted context omitted.
If someone recommends "don't do that" and you do that anyway, you can't reasonably blame their advice for being wrong because things went wrong when you did the thing anyway and then justify it with "well, sometimes people don't listen to your advice, so clearly it's not good enough, we really need to do more of the thing you advised against to fix this."
Are you saying that capitalism means completely open, zero regulation, zero licensure markets? Because it absolutely does not. It means (among other things) a competitive market with minimal information asymmetries between producer and consumer. Regulation can at time help this, e.g. requiring information disclosure, or preventing monopolistic practices. Just because a lot of regulations are bad (or enforced poorly)…
Earlier quoted context omitted.
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.
Interestingly enough, a couple of states allow interested people to become lawyers by apprenticeship instead of the university route. Wonder if that would ever be feasible for veterinarians.