Veterinarians will need to limit prescription charges to £21 and disclose treatment expenses transparently to shield pet owners from exorbitant bills. New regulations, set to take effect later this year, will mandate practices to publicly display price lists and clarify their affiliation status, particularly if they are part of a large chain.
The Competition and Markets Authority is cracking down on escalating costs in response to widespread outcry from pet owners. According to the CMA’s final report, the average expense for veterinary services surged by a staggering 63% between 2016 and 2023.
The pet industry, now valued at £6.7 billion annually, attributed to factors such as increased pet ownership, medical advancements, and the evolving perception of pets as family members. This equates to an average of £390 per household with pets. Some owners incur higher costs, with surgeries for cruciate ligament disease in dogs reaching up to £5,000.
The consolidation trend in the veterinary sector has seen major groups acquiring independent practices over the past decade. Presently, six dominant groups control over 60% of the market, compared to 10% in 2013. Notably, the top three industry players, IVC, CVS, and Linnaeus, are owned by private equity firms. Despite this, the CMA found that most group-owned practices charge higher prices than independent ones.
As part of the reforms, veterinary practices will be required to cap written prescription fees at £21 for the initial medication and £12.50 for subsequent ones. Currently, many practices charge over £30 for each prescription. Additionally, vets must disclose a comprehensive price list for standard services, including consultations, common procedures, and diagnostics. Presently, less than 40% of practices display pricing information on their websites. Practices must also provide a written cost estimate for treatments expected to exceed £500. Currently, fewer than half of pet owners receive pricing information in advance, with only 29% receiving it in writing.
These changes are a response to significant public and sector feedback received by the CMA. Martin Coleman, Chair of the independent Inquiry Group, emphasized the importance of these reforms in enhancing transparency and accountability in the veterinary sector.
The British Veterinary Association’s president, Dr. Rob Williams, welcomed the transparency and information enhancements, emphasizing the rising costs of delivering veterinary care due to various factors. He highlighted the increased expectations of pet owners for high-quality healthcare for their pets, necessitating advancements in veterinary medicine and technology.