New vet sector reforms bring transparency for owners but increased pressures for vet practices
Suneel Gupta, partner and head of private healthcare at RSM UK, comments on the Government’s white paper outlining its reforms to the veterinary sector:
“While the reforms will mean fairer prices and more transparency for pet owners, they’ll also bring greater administrative burden for vet businesses as they contend with more onerous compliance and governance requirements.
“Vet prescription fees have historically helped to subsidise other services, so the introduction of the £21 price cap is likely to see a reduction in this key revenue stream. Those with large populations of pets on long-term medication will be hit the hardest.
“The reforms may also dampen some of the scale-driven commercial advantages previously associated with consolidation in the market, such as benefits from economies of scale, local and national brand awareness, and internal cross-selling across the care pathways.
“While these reforms currently only apply to veterinary services, they may act as a test case for how the government approaches other private healthcare markets where consumer choice is constrained and pricing is difficult to compare.”