Why your vet bill is so high

“In the pandemic winter of 2020, Katie, my family’s 14-year-old miniature poodle, began coughing uncontrollably,” Helaine Olen writes. A veterinarian diagnosed her with heart failure and said that she had nine months to live. Olen, determined to keep her beloved pet alive, spent more than $1,000 in vet bills and took Katie for repeated scans, echocardiograms, and blood work. “People like me have fueled the growth of what you might call Big Vet.”

When Olen says Big Vet, she’s thinking about big-money investors, such as corporations and private-equity funds, that snap up smaller chains and previously independent practices. (Veterinary-industry insiders estimate that 25 to 30 percent of practices in the U.S. are under large corporate umbrellas now, up from 8 percent a little more than a decade ago.) Big Vet is also likely the reason why veterinary prices have dramatically risen. “Americans spent an estimated $38 billion on health care and related services for companion animals in 2023, up from about $29 billion in 2019,” Helaine reports.?

For many people, especially in the United States, pets are akin to family. Many pet owners will drop hundreds—if not thousands—of dollars to keep their animals alive and healthy. Private equity is betting on that fact.

Today’s newsletter brings you stories about the state of the American veterinary industry.

• “Why Your Vet Bill Is So High,” by Helaine Olen. Corporations and private-equity funds have been rolling up smaller chains and previously independent practices.
• “The Great Veterinary Shortage,” by Sarah Zhang. There are not enough humans to take care of all the animals. (From 2022)
• “Pets Really Can Be Like Human Family,” by Katherine J. Wu. And calling some pet owners the “parents” of their dogs or cats might be the best shorthand for these relationships.
• “A Crucial Blind Spot in Veterinary Medicine,” by Emily Anthes. The placebo effect shows up in pets too, but these treatments are fooling owners, not their animals. (From 2019)
• “How Much Would You Pay to Save Your Cat’s Life?” by Sarah Zhang. For $15,000, you can get your pet a new kidney. (From 2022)

— Stephanie Bai, associate editor