Veterinary Practices Face Financial Challenges Amid Growth in U.S. Pet Care Sector
Published: April 28, 2025
The American Pet Products Association expects veterinary spending in the United States to grow. They forecast $41.4 billion this year. Spending climbed from $35.9 billion in 2022 to $39.8 billion in 2024. This rise shows strength in the pet care field. Yet veterinary practices face hard financial problems. Rising hiring costs, tariffs, and other factors add strain.
Hiring Costs on the Rise
Leslie Boudreau runs a hospital in Huntington Beach, California. She sees problems when hiring veterinarians. The American Veterinary Medical Association says there are enough new graduates. However, many professionals work in government, military, or relief work. This shift leaves private practices with fewer choices.
Hiring a veterinarian now costs much more. New staff need close guidance at first. This need slows work and uses extra time and money. Many veterinarians now move from one practice to another. They search for better pay. Boudreau says nearly every peer worries about keeping their practice open.
Concerns About Tariffs and Rising Costs
Global price shifts also affect veterinary care. Tariffs raise prices for imported supplies. Medical tools like gauze and syringes become costlier. Rising insurance fees add further pressure. Karen E. Felsted, a management consultant, agrees. She says economic worry and fewer client visits hurt practices. Pet owners, unsure about money, cut back on spending.
Adapting to the Challenges
Veterinary hospitals try new ways to save money. Boudreau’s hospital now price shops and joins buying groups. They hope to lower supply costs. The hospital also reviews its list of medications. Fewer options may help manage costs better.
Boudreau faces high credit card fees from processing payments. In 2023, fees topped half a million dollars. She told clients that from May 1 a fee would be added for credit card use. Many clients reacted badly at first, but rising costs force practices to act.
Financial Recommendations for Veterinary Practices
Felsted offers more advice. She recommends a focus on client service to keep income steady. She urges hospitals to build up emergency funds and review spending habits. She advises clear talk with clients about payment choices. This focus on value can help in tough times.
Boudreau sums up the situation. Rising costs and tight profits now affect everyone. Veterinary practices must work smart and control what they can.
As challenges spread in veterinary care, practices might need to adjust their plans and client talks. This change can support financial health while still offering needed care.
For more insights and the latest in veterinary medicine, visit the AAHA website.
Photo credit: imagedepotpro via Getty Images Plus
This article is provided by the American Animal Hospital Association (AAHA) as part of its commitment to inform and inspire the veterinary community with valuable insights.
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