In my last column, I addressed some of the business reasons the cost of veterinary care for your pets is on the rise. The reasons can vary — from the cost of getting an education to getting setup in a practice, using an outdated, inefficient business model to non-profit organizations. The rising cost of equipment alone makes it much harder for veterinarians to simply hang out a shingle. But there are plenty of other reasons the cost of pet care has risen and there are some things you can do as a pet owner to help keep it in line.
The cost of drugs and supplies has increased far more quickly than can be accounted for by inflation alone. Veterinarians use many items in common with the human health care field, so price increases there translate into increased prices for your pet. A related problem is consolidation in the manufacture of medications. Larger companies are buying up smaller businesses, especially those manufacturing generic drugs, and then raising prices. One dramatic example occurred when Bausch & Lomb acquired several manufacturers of eye medications. A tube of veterinary ophthalmic antibiotic ointment went from $3.25 to more than $32 overnight.
The small number of pets that are covered by health insurance is another factor that leads to increased medical costs for individual pet owners. Health insurance helps to support a general level of care for an entire population, and without that support veterinary clinics have to charge what it costs to provide medical care within the requirements of their individual practice.
Still another economic pressure on traditional veterinary practices is the trend of consumers to buy their pet’s medications from sources other than their veterinarian.
Years ago, human doctors used to dispense medications themselves as an important source of revenue for their practices. Pharmacies wanted in on the action, and over the years they completely took over the business. Human medicine responded by raising their fees to cover the lost revenue. Veterinarians are facing the same choices today. Some are electing to limit or discontinue their pharmacies while raising their fees in other areas.
Even non-profit organizations have complicated the picture. In the past few decades large groups, such as humane societies and others, have opened veterinary practices within their facilities to help generate monies to fund their animal welfare programs. Their tax-exempt status helps them to effectively compete with veterinarians who do not have the same advantage. In the face of a decreasing number of patient visits, veterinarians have been forced to raise prices to maintain the revenue they need to operate their businesses.
Given all of these factors pushing the costs of veterinary medical care up what can a pet owner do? Here are a few things for you to consider:
• Communicate with your veterinarian regarding pharmacy costs. If you find the same prescription product from a reliable source that costs less, check to see whether your veterinarian is willing to match the price.
• Purchase pet health insurance. There are several companies with many policy options that can help cover your regular veterinary visits as well as major medical expenses.
• Preventing a problem is much less expensive that fixing a problem. In terms of veterinary costs for your pet, having them seen on a regular basis with screening lab work when recommended can head off problems that you might not be financially ready for later.
• Understand every veterinary practice is a unique business entity and the fees and operating costs of one practice cannot be fairly compared to another. As a consumer you have to make a decision as to where you spend your pet care dollars based on the level of comfort and trust you have in the veterinarian you choose.
As a veterinarian who has been both employee and practice owner I would love to wave a magic wand and change how veterinary clinics are operated:
• Instead of a having several individual practices in an area, veterinarians could consolidate into a single facility so that staff and major medical equipment could be shared, resulting in lower overall operating costs. These savings could result in lower costs to the pet owner.
I once worked in a practice like this in the Boston area where there was a small animal clinic with five veterinarians that shared the facility with a veterinary specialty hospital and an emergency clinic all under one roof. The total staff included more than one hundred people all dedicated to the concept of quality veterinary care 24/7.
• A concept I would like to borrow from New Zealand where I have spent some practice time is the idea of a veterinary co-op. These are essentially member-owned veterinary practices where the prices and operating policies are set by the membership and a board of directors. This would allow members and veterinarians the opportunity to share the struggle of managing health care costs.
In our current economy and business climate there are many factors working to continually put upward pressure on the costs of veterinary care for your pet. Your veterinarian is doing the best they can to provide a medical service in this increasingly competitive environment. As has always been true, the only constant is change, and this will certainly be the case for the future of veterinary medicine.
Dr. Kiel is the U.S. Army veterinarian currently supporting NAS Whidbey Island and Naval Station Everett. His columns appear the first and third Friday of each month. Please send questions or comments to Dr. Kiel at joseph.kiel@navy.mil.