Over the last three years, the ownership of veterinary practices in NI has undergone a radical change, with up to half of all practices locally now owned by large corporate companies.

Earlier this month, mid-Ulster based Parklands Veterinary Group, one of the largest veterinary practices in Ireland, was the latest to sell, having been acquired by VetPartners.

The other major corporate companies in the local market are CVS and Independent Vetcare (IVC), and they generally have a dominant position in veterinary care in the UK.

In the past, a young vet may have bought their way into a practice

The model they use to grow is based on borrowing funds from banks and asset finance companies to buy up practices. While each is profitable, they are also carrying very significant debt, that ultimately will have to be paid for.

So why is this trend happening?

In the past, a young vet may have bought their way into a practice. But that is much more difficult now, given the level of stock and equipment required to run a modern practice. Also, a lot of the value in a practice is “goodwill”, but securing finance for that can be difficult.

Therefore, for a practice owner thinking about a longer-term exit plan, options are limited. These corporate companies offer a solution, often on financially attractive terms.

So as each gains more control, does it mean higher costs for clients such as farmers? Potentially, but it should also be remembered that these businesses have the clout to buy drugs and products at substantially lower cost than a single practice.

Resistance

The next big target market for these corporate companies is the Republic of Ireland, and it looks almost inevitable that significant change will happen fast. However, there is also considerable resistance to the move, amid concerns that it will lead to a poorer out-of-hours service for farmers.

To be fair, that hasn’t happened in NI, and the fact that the move to corporate ownership has largely gone unnoticed perhaps can provide some reassurance south of the Irish border.

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