Corporate Veterinary Hospitals: A Model Set for Failure

The corporate business model is incompatible with the essence of our profession.

The veterinary profession, deeply rooted in a passion for animal welfare and scientific excellence, finds itself at odds with the profit-driven goals of large corporate entities. In recent decades, corporate veterinary hospitals have attempted to dominate the industry, implementing practices borrowed from traditional corporate models. However, these efforts have consistently clashed with veterinary professional’s core values and expectations. This fundamental misalignment suggests that corporate veterinary hospitals are inherently unsuited for long-term success. This article explores the reasons behind the failure of veterinary corporations and why their business model is incompatible with the essence of the veterinary profession.

Misalignment Between Corporate Goals and Veterinarian Values

The primary issue lies in the conflicting objectives of corporations and veterinarians. Large veterinary chains operate on a model designed to maximize profit, often pushing for high client volume and upselling services. The bottom line dictates every decision for corporate executives—more clients translate to more revenue. However, this approach directly contradicts the motivations of most veterinarians.

Driven by their love for science and animals, veterinarians choose their career path out of a deep-seated passion. Their desire to help, heal, and nurture animals is the cornerstone of their profession, far outweighing any corporate profit motive. Most veterinarians hold the quality of care they provide and the relationships they build with their patients and pet owners in high regard. When thrust into a high-volume environment prioritizing efficiency over personalized care, veterinarians experience frustration and burnout, a stark contrast to their initial inspiration.

This disconnect between corporate expectations and veterinarian values leads to moral distress and job dissatisfaction and significantly impacts patient care. Veterinarians find themselves torn between meeting corporate quotas and providing the level of care they believe is necessary, often resulting in compromised care and dissatisfied pet owners.

The Wrong People in Leadership Roles

One of the most significant mistakes of corporate veterinary hospitals is appointing managers with little to no experience in the veterinary field. In some cases, executives from entirely unrelated industries are placed in leadership positions, making decisions that affect the day-to-day operations of veterinary hospitals.

For example, Banfield, a well-known corporate veterinary chain, once hired managers from Starbucks to oversee hospital operations. While these individuals may have been highly effective in a retail setting, their lack of understanding of veterinary medicine proved to be a critical error.

Veterinary hospitals are not coffee shops or retail stores. Running a veterinary practice requires business acumen and a deep understanding of animal care's unique challenges and dynamics. Managers from unrelated industries may be skilled in increasing efficiency or reducing costs. Still, they often fail to grasp the complexities of veterinary medicine. Without the proper experience, these managers impose unrealistic expectations on staff, widening the gap between corporate goals and what veterinarians need to thrive.

The Neurodiverse Factor in Veterinary Medicine

An often overlooked challenge for corporate veterinary hospitals is the high number of neurodiverse individuals entering the veterinary profession. Many new veterinarians, particularly neurodiverse ones, struggle in high-pressure, high-volume environments. These individuals often thrive in settings where they can focus on the quality of their work, use their strengths in creative problem-solving, and operate with a certain degree of autonomy.

However, corporate veterinary hospitals prioritize efficiency above all else, pushing veterinarians to see as many clients as possible daily. This constant pressure creates a stressful work environment that is particularly challenging for neurodiverse veterinarians, who may find it difficult to cope with the fast pace, constant interruptions, and micromanagement that characterize these corporate settings.

As a result, many neurodiverse veterinarians experience significant burnout, leading to high turnover rates and a dissatisfied workforce. This affects the well-being of these individuals, the quality of care provided to patients, and the overall stability of the practice.

Veterinarians Resist Micromanagement

Veterinarians, by the very nature of their profession, are independent and highly educated professionals who take pride in their expertise. They have spent years studying veterinary medicine, mastering a complex and demanding field. Naturally, they expect to be trusted to do their jobs without constant interference. However, corporate veterinary hospitals often implement strict protocols and performance metrics, creating a culture of micromanagement that clashes with the independence veterinarians seek.

The situation becomes more frustrating when individuals with little to no veterinary experience micromanage. Many veterinarians bristle at the idea of being directed by corporate managers who do not understand the nuances of veterinary care. These managers often focus on increasing profits and enforcing policies prioritizing quantity over quality, further eroding trust and respect between veterinarians and their corporate employers.

When veterinarians feel micromanaged, particularly by individuals without the necessary expertise, they can feel resentment and dissatisfaction. This constant interference with their professional judgment and expertise can be disheartening. Eventually, many leave the profession or seek out independent practices to regain control over their work, a decision often driven by a desire for professional autonomy and respect for their expertise.

Erosion of Client Trust and Relationships

The corporate push for higher profits often leads to an increased focus on upselling unnecessary services or products, which can strain client relationships. Pet owners trust veterinarians to recommend treatments and services that are in the best interest of their pets. When they sense that a veterinary hospital is more focused on profit than care, that trust is eroded, a concerning trend that affects the overall integrity of the profession.

Corporate practices may implement aggressive marketing strategies or sales targets that pressure veterinarians to recommend services or products that may not be essential for the pet's well-being. For instance, a corporate hospital might push for unnecessary dental cleanings or vaccinations to meet sales targets, compromising the veterinarian's integrity and damaging the long-term relationship with clients.

As a result, many clients turn to independent veterinary practices, where they feel their pet’s well-being comes first. This exodus further undermines the financial stability of corporate veterinary hospitals, creating a cycle of diminishing returns on their profit-focused strategies.

Lack of Adaptability and Innovation

Corporate structures often struggle with adaptability and innovation, which are crucial in the rapidly evolving field of veterinary medicine. Independent practices can quickly adopt new technologies, treatment methods, or management styles based on the needs of their specific clientele and staff. In contrast, corporate veterinary hospitals typically have rigid, top-down decision-making processes that slow the implementation of new ideas or technologies.

This lack of flexibility can result in corporate practices falling behind in medical advancements, client communication strategies, and workplace culture improvements. As independent practices evolve to meet changing client expectations and veterinary best practices, corporate hospitals may find themselves increasingly out of touch with their staff and clientele.

The Inevitable Failure of the Corporate Veterinary Model

The reasons corporate veterinary hospitals fail are clear:

• The fundamental disconnect between corporate goals and veterinarian values.

• The appointment of inexperienced managers.

• The unique challenges neurodiverse veterinarians face.

• The inherent resistance to micromanagement.

• The erosion of client trust.

• The lack of adaptability.

These factors create an environment that could be more conducive to the long-term failure of corporate veterinary hospitals.

As long as corporations prioritize profits over patient care and veterinarian well-being, they need help retaining talented professionals and building meaningful, long-lasting relationships with clients. For veterinarians, the future likely lies in smaller, independent practices where they can regain control over their work, prioritize the well-being of animals, and operate in an environment that values quality care over profit margins.

For the veterinary industry to thrive, leaders must recognize that they cannot simply impose a corporate approach on a field driven by compassion and science. The continued failure of corporate veterinary hospitals serves as a reminder that the values and needs of veterinarians must be respected and supported for any veterinary practice to succeed.

The way forward may involve hybrid models that balance business efficiency with veterinary ethics or a return to community-centered independent practices. Whatever the solution, the current corporate model is unsustainable and destined for failure unless significant changes align with the veterinary profession's core values.