Sick Pets, Wealthy Investors! How to Fix the Veterinary Care Crisis created by Private Equity
"I think we don't have enough veterinary professionals. I don't really care what the AVMA is saying that there is not a shortage. I have, three practices right now that we're trying to staff. We have approximately 17, 18 veterinarians. We could use 25... ...people are leaving the industry and there are a lot of reasons for that... we are losing veterinary professionals. And I think one of the reasons we are losing them is they are becoming disenchanted and disenfranchised by private equity and corporate America. If we could give them a shelter to practice under where they're not asked to sell wellness plans. Don't get me started...Wellness plans were not designed by veterinary professionals, not anybody practicing or not anyone significantly connected and wanting to support the human-animal bond. That's not how you do it! The human animal bond is in the crosshairs of these folks. It is a target to make money period, the end... We all need to make money. We are, as veterinarians, severely burdened with student loan debt. We should all make a livable wage. We should be able to pay our loans and buy a house but no one is looking to be a millionaire or get rich when they go into veterinary medicine. Not most of us... I'm an entrepreneur so I'm a little outside of the box, but for the majority of veterinary professionals, we just want to practice our trade and our gift and be a part of supporting a healthy human animal bond and that, in my opinion, if we were allowed to do that, we'd have probably a longer career lifespan than we currently do..." Dr. Cherri Trusheim, DVM What happens to the pet patients, their owners, and the veterinarians in charge of their care when private equity is managing pet care? With 66 percent of households owning at least one pet and with $136.8 billion of household income being spent on these pets (source 2023-2024 National Pet Owners Survey conducted by the American Pet Products Association), the pet boom has not gone unnoticed by private equity firms. Mars is the biggest pet care consolidator, best known for making candy. Urban Animal founder Dr. Cherri Trusheim, DVM has observed it is negatively impacting all involved. This trend often detracts from employee culture. Corporatization also diminishes the standard of care by upselling and tying veterinary professionals’ compensation to the amount of products and services they sell. As a solution, Trusheim is introducing the first large-scale worker cooperative model as a solution to give power back to their team of more than 100 employees. and accessible, option-based care. Worker cooperatives are gaining popularity as a means to establish equitable and sustainable employment, partly fueled by recent legislation in Washington and a growing interest in the model. The Cooperative Way, a consultancy group specializing in worker cooperative establishment, has collaborated with Urban Animal to inaugurate a cooperative venture. Dr. Cherri Trusheim's contribution of 5% of the company's value has served as the initial seed funding to propel the cooperative's launch. Adam Schwartz, Founder, The Cooperative Way has noted that “workplace democracy and worker cooperatives are becoming an increasingly attractive option that addresses a variety of the nation’s most common workplace challenges, including labor shortages, corporate culture, pay equity, and succession planning. The model is often formed to lift people out of generational poverty, as lower-income, people of color, and immigrants have founded the majority of worker co-ops in the US.” Share this episode - If you are a veterinarian or you know a veterinary professional looking to have a better way of treating their patients while having a quality of life and well-being please have them listen to this episode and reach to Dr. Trusheim and Adam Schwartz.
