Veterinarians will need to limit prescription charges to a maximum of £21 and provide transparent information on treatment expenses to prevent pet owners from facing excessively high bills.
Under new regulations that will take effect later this year, veterinary practices will be required to disclose their price lists and indicate if they are part of a larger chain.
The Competition and Markets Authority is implementing these measures in response to growing concerns among pet owners regarding escalating expenses. The CMA’s latest report confirms a significant 63% increase in the average cost of veterinary services from 2016 to 2023.
The pet care industry, valued at £6.7 billion annually, has expanded due to a rise in pet ownership, advancements in medical treatments, and the trend of viewing pets as family members. This equates to an average expenditure of £390 per pet-owning household, with some individuals spending substantially more, such as up to £5,000 for cruciate ligament surgery for dogs.
In the past decade, several independent veterinary clinics have been acquired by major corporate entities. Presently, six dominant groups control over 60% of the market, a considerable increase from the 10% share in 2013. Notably, IVC, CVS, Linnaeus, Medivet, Pets at Home, and VetPartners are the primary industry players.
Despite the consolidation, the CMA found that most corporate groups tend to charge higher prices compared to independent practices. Furthermore, the acquisition of independent clinics by large corporations often results in elevated costs for services. The CMA highlighted that profits significantly surpass costs for four out of the six major groups, and customer satisfaction is notably higher at independent establishments.
Among the key reforms, the maximum fee for a written prescription will be set at £21 for the initial medication and £12.50 for subsequent ones. Currently, many clinics charge over £30 for each prescription. Additionally, veterinarians will be mandated to publish detailed price lists for standard services, encompassing consultations, common procedures, and diagnostic tests. The majority of practices presently lack transparent pricing on their websites. Moreover, practices must furnish a written cost estimate in advance for treatments exceeding £500, as the current practice of providing pricing information in advance is insufficient.
The regulatory changes are a response to substantial feedback from the public and the veterinary sector, according to the CMA.
Martin Coleman, Chair of the independent Inquiry Group, emphasized the significance of the reforms in enhancing transparency and accountability in the veterinary industry, aiming to assist pet owners in making informed decisions and ensuring the best care for their animals.
Sue Davies, Which? head of consumer rights policy, praised the CMA’s actions, citing the importance of trustworthy veterinary services for pet owners. She also highlighted the need for broader reforms in the veterinary market to strengthen standards and ensure independent regulation.
Dr. Rob Williams, President of the British Veterinary Association, applauded the measures focusing on transparency and information, which are vital for pet owners to make well-informed choices and support competition in the sector.