Shocking Report Reveals How Inflation is Changing Veterinary Visits: Pets at Risk?
Recent data has revealed a surprising trend in the veterinary industry: while practice revenue saw an average increase of 5.7% from August 2021 to August 2023, the number of client visits actually dropped by 2.7%. This suggests that the current inflationary climate is causing pet owners to think twice about the costs of veterinary care, leading to fewer visits.
This significant trend was one of the key topics discussed during the Practice Pulse session at the AVMA Veterinary Business and Economic Forum, which took place virtually on October 24-25. Another finding from the upcoming 2024 AVMA Pet Ownership and Demographics Sourcebook indicates that the U.S. pet population continues to grow, but the demand for veterinary services seems to be stabilizing.
Abby ShalekBriski, AVMA assistant director of statistical and data analysis, provided some eye-opening insights. She noted a steady increase in the dog population in the U.S., from 76.8 million in 2016 to between 86.2 and 90.4 million in 2022. Households owning dogs increased from 38% to 45%, with a rise in single-dog households as well. The cat population also saw growth, from 58.4 million to between 66 and 69.7 million, with cat-owning households growing from 25% to 31%.
Despite these increases, ShalekBriski pointed out that this growth does not necessarily correlate to the perceived shortage of veterinary care. She cited an AVMA survey showing that most pet owners still managed to get timely appointments for both routine and emergency care.
Sheri Gilmartin, vice president of data services for VetSource, described the last few years as a rollercoaster for veterinary practices, with 2023 bringing a return to more stable, pre-pandemic levels. However, she noted the contrasting experiences of consumers, with rising living costs and looming recession fears impacting their spending habits.
Clint Neill, PhD, AVMA senior economist, also expressed concerns about the economic outlook, highlighting low consumer confidence and its impact on veterinary medicine. A survey by Cleveland Research Company showed an increase in price sensitivity among pet owners, with more respondents agreeing that higher prices would delay their visits to the vet and lead them to seek cheaper medication options.
Data also revealed a significant increase in "lapsed visits," where pets hadn't been seen by a vet in 14 to 18 months. Gilmartin suggested that while pet owners' love for their pets remains unchanged, they are extending the time between vet visits.
VetSource data further indicated a decrease in different types of vet visits, including sick, wellness, surgery, and dental appointments. Gilmartin interpreted this as pet owners being cautious with their spending, possibly delaying preventive care.
To help veterinary practices navigate these challenging times, Dr. Neill and Gilmartin recommended strategies such as reducing expenses, maximizing appointment efficiency, offering telemedicine, and fostering a positive workplace culture.
As the veterinary industry navigates these complex economic times, it becomes evident that while pet owners deeply care for their pets, financial constraints are reshaping their approach to veterinary care.
