NYT: Your Vet is Going High-Tech, and Expensive

Posted on by Devon Herrick
Our dog Clementine is part of the family. (That’s her helping read her lab report. She’s a Golden Doodle rescue that spent her first year in Lake Tahoe before moving to Texas. She’s not a cheap date. She has three different veterinarians. She has a veterinary behaviorist for her mental health (she’s an odd dog). She also has a regular veterinarian for routine health needs, and we use a cheaper veterinary clinic housed in a Walmart for lab work and vaccinations. If we sound like overindulgent pet owners, we’re not alone according to the New York Times.
Americans increasingly consider their pets as members of the family. Research finds that pets are spending much of their lives inside, whereas in decades past they would have mostly lived outdoors. One result of Americans’ closer relationships with their pets is they are willing to spend a lot on pet care. Another is that technology has advanced to treat more animal conditions than available in the past. Also, the cost of veterinary care has risen sharply in the past decade. Since 2014 veterinary prices have risen more than 60%, or about double the rate of inflation.
And because of more advanced medical offerings, pets today can survive serious illnesses, like cancer, that would once have been unthinkable. They have access to surgeries and drugs that can vastly improve their lives.
“We live in the most technologically advanced time in human history, and how wonderful is that?” said Dr. Tracy Dewhirst, a veterinarian in Corryton, Tenn. “But it comes at a cost.”
A vet interviewed for the article told a story about a client who brought their dog in because it had been throwing up. He would typically have told his client to take the dog home and give it sips of water. Another vet ordered a blood test, x-rays, IV fluids and an overnight stay. He realized it was a whole new world that many of his clients could not afford.
With a growth in pet ownership and surveys showing that Americans are willing to go into debt to pay for their animals’ care, vet clinics have become increasingly attractive to investors. About one-quarter of primary care clinics and three-quarters of specialty clinics are now owned by corporations, according to Brakke Consulting, which focuses on the animal health industry.
With private equity investors buying veterinary practices the results are not necessarily consumer friendly.
One vet from California said she quit her job after she was told her “cost per client” was too low. Another, from Virginia, said she was told she needed to see 21 animals per day. A third, from Colorado, said she was taken aback when she overheard a manager saying some of the vets at her office needed coaching on “getting the client to a yes.”
Only about 4% of pet owners have pet insurance, the premiums for which rise as pets age. The increasing prevalence of pet insurance and the growth in pet care credit is a double-edged sword. It gives clients options, and it gives the investors who increasingly own veterinary practices ideas about how to boost their revenue (and your bill). Pet insurance companies are having to adjust as rising prices squeezes their financial health.
One problem is that veterinary clinics are quick to offer Care Credit that allows pet care to be paid using a revolving charge card, often at very high interest rates. Care Credit sometimes allows clients to pay for needed care over months (and years). It also allows clients to put off hard decisions while racking up bills they can hardly pay.
Some groups, including the American Society for the Prevention of Cruelty to Animals, are researching how vets can perform common procedures more cheaply. And many veterinarians say they try to offer a “spectrum of care,” a nonjudgmental way of discussing less expensive options.
There are numerous parallels with human medicine. Technology is expensive and providers are always on the lookout for revenue enhancing strategies. Look online for information prior to heading to the vet. Talk to your veterinarian. Let him or her know you’re price sensitive, and the sky is not the limit. Listen carefully and read between the lines. Be skeptical. Be prepared to push back at aggressive overselling and don’t let them guilt you into spending money on futile care.  I’ve had vets recommend futile care, that would barely prolong life, when the humane thing was to let the pet go. When I pushed back, they’ve admitted I was right.
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