I have always been concerned that the rate of price increases in veterinary medicine could hurt access to care and inversely affect pet visits. Coupled with the general uncertainty surrounding an election year, candidate changes, and other significant events, we have a recipe for a very turbulent year-end.
The following two articles illustrate a situation we need to be acutely aware of:
Pet Inflation Outpaces Regular Inflation: This article shows how much pet inflation has surpassed regular inflation. The takeaway is that the veterinary segment will likely see fewer visits due to these rising costs. Pet Business Professor - Pet Inflation Update
Veterinary Industry Tracker: Despite historically maintaining positive revenue amidst reduced visits, the 14-day rolling revenue average just above zero in early July is deeply concerning. It may indicate that price increases have reached a tipping point, where reduced visits now jeopardize overall revenue. AVMA - Veterinary Industry Tracker
Losing this many visits poses a serious problem, as getting patients back in the door is difficult. People are forgoing care for their pets, giving them up, and not replacing them. If this trend continues, it could lead to hospital closures, job reductions, and a situation where new veterinarians cannot support themselves.
Once clients perceive pet ownership as cost-prohibitive, changing that mindset will take years. While these articles provide a snapshot, they highlight a trend we must monitor closely as hospitals consider price increases for 2025. Be careful not to drive all your customers away, as getting them back is difficult.
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