Business & Economics
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Product rebates to veterinarians spur tax questions
4/9/2018
For honesty's sake, report the money, accountant advises
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How revised tax code treats veterinary practices
3/13/2018
VIN's general counsel demystifies new rules on pass-through deductions
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PetSmart looks beyond Banfield for veterinary-clinic operators
3/8/2018
Retailer lists 188 vacant clinic spaces available
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UK veterinarians cautious on plan for new school
2/16/2018
Low wages, long hours in profession a concern
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Attempt fails to change Washington law on nonprofit veterinary clinics
2/12/2018
Bill would have let humane societies, animal-control agencies broaden services
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Veterinarians form group dedicated to independent practice
2/1/2018
New association aims to help small businesses thrive
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Second veterinary business allies with Petco to run in-store clinics
1/18/2018
The Pet Vet plans operations in Texas, Oklahoma, Arkansas
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Petco stores now house veterinary clinics
1/10/2018
Texas, California and Colorado are first
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In Britain, a shortage of veterinarians brews
12/12/2017
Brexit fallout already evident
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Banfield joins employer trend with offer to defray student debt
12/1/2017
Well-intentioned programs might be ill-advised for some borrowers, experts caution
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Mars antitrust remedy 'not even a drop in the bucket'?
9/26/2017
Deal puts 2,000 practices under one owner
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Publisher Time Inc. enters veterinary-discount realm
9/11/2017
Club gives pet owners 25 percent off medical services
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FTC to Mars: Divest 12 clinics in order to buy VCA
8/30/2017
Mars agrees to proposed antitrust settlement
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Burglar to veterinarians: Don’t display lavish stock of flea-tick products
7/13/2017
Prisoner shares his views in letter
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The dark side of modern X-ray equipment
6/8/2017
Veterinarians find digital radiography expensive, maddening
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‘Smart’ collars for animals proliferate
5/5/2017
Claims of health benefits as yet unproven
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Suspect admits to burglarizing veterinary clinics
4/18/2017
Lured by value of flea-and-tick products
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USDE seeks input on Public Service Loan Forgiveness
2/10/2017
Veterinarians asked to submit ideas to improve program
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Banfield CEO Vincent Bradley resigns
1/31/2017
Departure follows news of Mars-VCA deal; Brian Garish named successor
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Mars to buy VCA
1/9/2017
Largest veterinary hospital-chain merger in history under way
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Big gets bigger in 2016
12/29/2016
Year-end snapshot of noteworthy business deals in animal-health market
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Veterinary-drugs seller Sean Gerson arrested
12/16/2016
FDA agent tracked supplier for five years
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Ex-Banfield leaders buy practices as ‘LegacyVet’
10/18/2016
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Veterinary clinic opens at a Florida Wal-Mart
10/17/2016
Practice owners are first to lease space from retail giant
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Hemopet ‘1,000 percent going to stay in business’
9/21/2016
Failure of tax-exemption quest doesn’t doom canine blood bank
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Canine blood bank seeks sales-tax relief
8/12/2016
Proposed California law would exempt only nonprofits
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GL Advisor founder sentenced to nine years in prison
6/17/2016
Daniel Thibeault tearfully admits fault
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Make price paramount when choosing veterinary school, many advise
5/10/2016
Other considerations include campus culture, location, program emphases
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Veterinary prescription practices reviewed by House panel
4/29/2016
Lawmakers profess affection for pets, appreciation of veterinarians
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House subcommittee to consider pet-prescription rules
4/28/2016
Proposed ‘Fairness to Pet Owners Act’ a subtext of hearing Friday
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Zeuterin marketer falters two years after U.S. debut
4/22/2016
Sales of injectable sterilant for dogs come up short
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Pet insurer renounces controversial rate factor
3/24/2016
Trupanion cites poor execution after veterinarians object
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Jobs forecast for veterinarians better than average
12/22/2015
Labor economists predict 9 percent growth
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Report rekindles debate on rural veterinary workforce
12/21/2015
Methodology questioned in provocative study on Appalachia
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Educational debt debated in veterinary economic summit
11/5/2015
Growth in schools drives applicant-to-seat ratio to 1.6-to-1
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Mars Petcare wooed fast-growing BluePearl
10/29/2015
Veterinary company co-founder answers questions about sale
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Coming soon: credit-card security changes
9/18/2015
Merchants using outdated equipment may be on hook in fraud cases
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Veterinary generics squeezed by blocking agreements
9/8/2015
Zoetis, Merial bar big distributors from selling competing generic drugs
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New entrants to pet microchip market draw critics
7/29/2015
Are chips with ‘900’ codes unreliable or unfairly targeted?
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Entrepreneur finds pet microchip problem unsolvable
7/16/2015
Owner apathy, tangled industry leads Check the Chip to give up
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Idaho veterinarians make tentative peace
5/28/2015
Humane Society agrees to limit some services
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FTC: Pet-medications market could be more competitive
5/27/2015
Consumers would benefit from broader prescription portability, report says
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Washington law on veterinary nonprofits: model or muddle?
5/26/2015
Requiring income qualification not same as means testing
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Nonprofit veterinary care: for whom and how?
5/21/2015
Profession spars over income eligibility, means testing
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Facial-recognition apps scout lost pets
4/15/2015
Tool supplements tags, chips
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MWI sale reflects trend in pet-related industries
1/27/2015
Veterinarians wonder how service, prices will fare
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Sale of pet-supply company sign of changing times
12/17/2014
Petco purchase of Drs. Foster and Smith one of several industry shifts
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Web address extension .vet among hundreds rolling out
12/9/2014
Domain names first come, first served
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Ownership of Sentinel antiparasitic line poised to change
10/31/2014
Virbac seeks Novartis veterinary drugs in transaction with Eli Lilly
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New veterinary degrees may not pay off, economists find
10/29/2014
AVMA conference highlights debt, salary issues
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Veterinarians, schools emphasize yearly pet checkups
8/15/2014
Survey finds more pet owners concerned about cost of care
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Most veterinarians reduce prices so animals can get care, survey finds
7/16/2014
Few practices track discounts systematically
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VCA Inc.: Gentle giant or takeover threat?
7/11/2014
Views of chain veterinary hospital owner span the spectrum
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Fate of Novartis portfolio in question after sale to Eli Lilly
6/27/2014
Deal creates world's second-largest animal health business
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Pet treats: Does 'Made in USA' mean safe?
6/10/2014
Illness linked to Chinese-made jerky spurs label changes
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Pet store chains to drop China-made treats — eventually
5/21/2014
Petco, PetSmart bow to customer concerns
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Veterinary private-practice sector makes modest rebound
5/13/2014
Revenues rise, mostly through price increases
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Blue Buffalo advertising draws long history of complaints
5/9/2014
In latest, Nestlé Purina sues for false advertising
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VCA Antech prevails in breach-of-contract suits
5/1/2014
Laboratory services provider continues suing veterinarians
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Surveys yield conflicting trends in U.S. pet ownership
3/31/2014
Counts of dogs and cats differ by millions
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Equine hospital by New York racetrack revived
2/27/2014
Cornell University signs lease-buy agreement
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Veterinarians receiving loan repayment awards say program makes a difference
2/13/2014
But states have difficulty evaluating its effect on shortage areas
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Navigating student debt, income-based loan repayment
2/4/2014
Veterinarian shares experience, advice about dealing with government programs
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Demise of Partners in Wellness leaves some veterinarians in bind
10/14/2013
Program failed to catch on, Nestle PurinaCare says
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Veterinary clinics scrutinize CareCredit in wake of investigation
7/12/2013
Merchant expense, new rules, reputation questioned
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When dental schools closed: lessons for veterinary profession?
6/10/2013
Student applications, not practice economics, drove decisions
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Rise of veterinary chain ownership begets Canadian group purchasing
4/10/2013
Uniform pricing tradition gives way
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Banfield expansion brings new stand-alone clinics
3/28/2013
Eight in Portland, Ore.; other cities possible
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Group purchasing activity on upswing in veterinary medicine
2/28/2013
Organizations proffer bulk discounts to independent practices
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Is the doctor in?
12/5/2012
Veterinarians grapple with demand for extended hours
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Ultrasound machine salesman pleads guilty to theft
11/8/2012
Plea follows indictment of Patrick Jackson
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Satellite practices: academic evolution or unfair competition?
10/26/2012
OSU to open emergency, specialty practice in Columbus suburb
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Veterinarians recount ordeals with major lender
9/6/2012
Wells Fargo strives to 'serve as a trusted advisor to veterinarians'
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Hospital chain headhunts for talent among veterinary practice staff
7/3/2012
Veterinarians debate ethics of Banfield's recruiting methods
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No simple answers on supply and demand in veterinary profession
5/29/2012
Workforce data outdated, conflicting
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Veterinarian opens up about going undercover
5/22/2012
Flea-product diversion adventure twisted, turned
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Veterinarian investigates illicit diversion of flea products
5/8/2012
Gray-market sales veiled by deception, intrigue
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‘Why are vets so expensive?’
4/13/2012
Practitioner tackles sensitive question
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Veterinary diagnostics giant sues multiple practitioners
3/9/2012
VCA Antech alleges breach of extended lab service contracts
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VCA Antech buys largest Canadian veterinary chain
1/26/2012
Associate Veterinary Clinics operates 44 clinics in three provinces
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Veterinarians confront Internet pharmacy PetMed Express
1/16/2012
Company acknowledges: ‘Some mistakes were made’
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Veterinary practices inch back to growth
1/1/2012
Surveys of third-quarter results show some improvement
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PetMed Express stumbles
12/8/2011
Competitive pressure up in veterinary-drug sales
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Credit card processors pass costs of IRS rule to merchants
12/2/2011
Negotiate to have fees waived, expert advises
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Loan broker accused of bilking veterinarians now sells wellness plans
11/10/2011
Ron Paterson draws more complaints
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Bid to bring veterinary education to Alaska stirs debate
11/9/2011
Fears of oversaturation weigh on need for more veterinarians
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Merial knows, diverting veterinarians assert
11/4/2011
Maker of Frontline denies the company condones, encourages diversion
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More veterinarians sue flea products broker WTF Wholesale
11/4/2011
Claims collectively top a half-million dollars
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Equipment dealer deludes some, aids others
11/2/2011
Ron Sassetti earns mixed reviews from veterinarians
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‘Free’ Hill’s cat food samples not exactly free
10/24/2011
Veterinary clinics report accepting samples triggers orders for more
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Subterfuge, confusion surround new credit, debit card rules
9/30/2011
Merchant savings on fees not automatic
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VCA's buy of Vetstreet raises worries about control of clinic data
9/1/2011
New owner says it will not inspect clinic information
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Complaints mount against gray-market broker WTF Wholesale
8/29/2011
Problems open view into world of flea product diversion
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Entest to use veterinary practices as revenue driver, research venue
8/23/2011
Concerns about setup point to potential conflicts of interest
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Amerisource Medical under investigation by police in two states
8/3/2011
Ultrasound-equipment vendor accused of cheating customers
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Out of the frying pan, veterinarians mix economic uptick with uncertainty
7/28/2011
Increased competition likely to blunt recovery for veterinary clinics
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New poll finds many clinics in flagging health
7/18/2011
Study: Advertising, communication, consistency key to boosting veterinary visits
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Pfizer seeks to unload animal health division
7/8/2011
Sale or spin-off expected
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Tight job market squeezes large-animal veterinarians
6/27/2011
Some say shortage of food-supply practitioners is over
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Gilded Lilly? Bayer challenges Elanco claims
6/24/2011
Bayer challenges Elanco claims about diversion, loyalty to veterinarians
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Veterinary technicians: Opportunities, but at what cost?
6/9/2011
Support staff cite low wages, spotty professional respect
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Tough job market compels dogged hunt by new veterinarians
5/19/2011
Fewer grads enjoy luxury of multiple offers
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Proposal for new Banfield hospital prevails over objections
5/6/2011
Veterinarians in California city seek to resist ‘Wal-Martization’
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ISU wins first round in litigation against veterinarians
5/3/2011
Specialists barred from competing with ISU hospitals fight back
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PLIT rolls back workers' comp advice for relief veterinarians
3/29/2011
Broker Hub International issues clarification
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Thrift commerce meets veterinary medicine in GroupDVM
2/10/2011
Company uses 'power in numbers' to leverage deals for veterinarians
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Study: Veterinarians can reverse decline in visits
1/27/2011
Report identifies contributing factors and ways to counter the trend
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Price soars on popular antibiotic metronidazole
1/13/2011
Limited competition among manufacturers behind increase
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Target tests market for pet medications
12/22/2010
Trend in retail sales of veterinary drugs accelerating
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Veterinarian struggles to protect her online reputation
12/8/2010
Practitioner suspects Internet extortion is at play
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Canine Health Institute closing its doors
11/18/2010
Veterinary center for pain, rehab, imaging, neurosurgery was unique
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Clinic owner struggles with ultrasound-equipment vendor
11/17/2010
Amerisource Medical blames veterinarian’s location for shipment delay
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Veterinary Medicine Loan Repayment Program gets off ground
11/9/2010
First USDA awards go to 62 recipients
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Frontline, ProMeris not going OTC, manufacturers say
11/8/2010
Veterinary market research survey gives confusing message
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NAS veterinary workforce study nears release
10/28/2010
Stakeholders expect report to shed light on supply and demand in America
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Navigating credit card security requirements
10/21/2010
Compliance isn't cheap or easy
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PetMed Express reports slip in sales
10/19/2010
Ad costs rise as consumer spending falls with the online pharmacy
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Lawsuit raises questions about sale of drugs to non-veterinarian
10/13/2010
Case brought by Bayer against shelter rescheduled for Dec. 2 hearing
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Health credit programs: safety net or predatory lending?
10/4/2010
NY state investigation puts veterinarians on the defensive
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CEVA buys Summit VetPharm
9/2/2010
Plans to market Vectra parasiticides globally
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Just say 'no' to telephone solicitors
8/23/2010
Clinic owners describe latest scheme involving Discover, Legal Club of America
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PVP, subsidiaries seek bankruptcy protection
8/23/2010
Veterinarians dismayed by state of company
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PVP faces bankruptcy; veterinarian investors stand to lose
8/12/2010
SEC filings reveal distributor entered into forbearance with lender
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Economic recovery still bumpy for veterinarians
6/8/2010
After first-quarter gains, California veterinary practice revenues slip in April
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Bayer wins some, loses some
4/28/2010
New sales policy continues to reverberate
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Veterinary publishers mixed on future of print journals
4/23/2010
Amid advertising decline, MediMedia bets on online services; others say print runs far from over
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Veterinarians bear brunt of software shortfalls, vendor growing pains
4/12/2010
VIA asks for patience as company updates practice management software
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Businesses join veterinarian in Yelp class action lawsuit
4/1/2010
DVMs need guidance for dealing with online reviews
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PetSmart first retailer to carry Advantage under new Bayer policy
3/17/2010
Banfield and other clinics turn away
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Merial details company stance on product diversion
2/26/2010
Executives speak out after veterinarians question company loyalty
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Bayer opens flea product sales to retail outlets
2/10/2010
Citing diversion, company ends policy of selling only through veterinarians
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PM software maker ImproMed buys VETECH
1/16/2010
Second acquisition for ImproMed within six months
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2009 brought huge consolidations in animal health industry
12/21/2009
Butler and Schein merger latest in a series
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Assets of a slow economy
12/7/2009
Putting life back into the work-life balance equation
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Merial reports Immiticide, Heartgard shortages
12/5/2009
Rationing of Immiticide leaves some veterinarians in a lurch
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Regulatory fee increases raise veterinarians' hackles
10/29/2009
California board readies to impose stiff price increases
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Sidewiki hijacks sites, puts reputations at risk, critics say
10/2/2009
Dangers of Google review tool spark concerns from veterinarians
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Online directory earns mixed reviews from veterinarians
9/16/2009
VINners air grievances about LocalVets.com, now known as YextVets
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Survey suggests recession spares many veterinary practices
9/3/2009
Reports show specialty, emergency practices bear brunt of downturn
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Activists go after stores selling dogs from puppy mills
7/27/2009
Movement to stamp out large commercial breeders gains traction
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California tax officials target breeders via Internet
6/29/2009
Officials search for those who skirt tax obligations
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Funding woes kill Fresno lab, haunt DVM program
6/26/2009
Calif. budget crisis wreaks havoc on veterinary medical education
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Advanta Bank to close all credit accounts this week
5/27/2009
Card issuer catered to small businesses
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Veterinarians must comply with Red Flags Rule by May 1
4/22/2009
Most practice owners already meet requirements, AVMA official says
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Veterinary charity highlighted by economic woes
3/30/2009
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VNN unveils online advice site for pet owners
3/17/2009
Project to generate financial support for media network
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Economic downturn hits veterinary practices
3/11/2009
New VIN survey results anticipated
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COBRA subsidy puts more onus on employers
3/3/2009
New rules likely burdensome, experts say
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Calif. veterinary service tax proposal dies
2/25/2009
Issue could re-emerge in future budgets
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Off the table?
2/12/2009
Calif. sales tax on veterinary services loses steam
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Tax experts stress the economy this year
2/3/2009
Pay attention to practice management, they say
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New center aspires to help dogs that might otherwise be euthanized
2/2/2009
Rehab, pain management and imaging under one roof in Houston
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Reports show veterinary practices hurting
12/24/2008
Veterinarians feeling nation's longest recession in a quarter century
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Fed adopts consumer credit-card protections
12/19/2008
VIN members wary of other finance deals
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Fuel prices drop, yet surcharges remain for diagnostic services
12/18/2008
DVMs push back; Antech drafts letter to explain fees
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Survey Finds Economy Eroding Revenues
12/5/2008
The present depression in the economy is starting to be felt now, according to a survey of Veterinary Information Network members.
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Dr. Tice's interest rates reversed and refunded
11/26/2008
In a classic case of oil going to the squeaky wheel, a veterinarian whose soaring credit card interest fees roused indignation has gotten a refund on excessive interest charges.
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Henry Schein Executive Says Privacy Rules Impede Inquiry Into Credit Card Rate Hikes
11/20/2008
Company says most cardholders are unaffected
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Soaring credit card rates raise eyebrows, hackles
11/14/2008
Dr. Tice warns colleagues to watch their credit card interest rate; Henry Schein offers to advocate on behalf of customers using their affinity card.
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Sales Tax on Veterinary Services
11/11/2008
California may impose a sales tax of as much as 10.25 percent on veterinary services if a proposed economic plan from Gov. Arnold Schwarzenegger is passed.
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Brokers say Economy Not Hindering Capital
10/28/2008
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Pet food prices squeeze owners, veterinarians
10/27/2008
Prescription diets costs skyrocket, setting off consumers
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Brakke to release economic downturn report
10/10/2008
Study to publish in mid-December
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AVMA to release economic data
9/9/2008
Biennial economic survey, starting salaries report set for publication
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Handshakes are history; read the fine print, consultant says
8/26/2008
Product purchase gone wrong burns veterinarian
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CPA accused of stealing $2.7 million from VPI
7/23/2008
Stephen Anthony Friekin faces 103 felony counts of money laundering
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Feeling the economic pinch? Stop giving away services, consultant says
7/22/2008
Dr. Thomas Catanzaro suggests ways to earn more income
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Landscape for business refinancing wide open, bankers say
Go local for low rates, veterinarian suggests
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On the record
The VIN News Service recently conducted a Q&A session with the American Veterinary Medical Association and its indemnity arm, the Group Health and Life Insurance Trust (AVMA-GHLIT). The discussion explores the controversial partnership that’s emerged between GHLIT and Pets Best Insurance, a private entity.
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Butler and Schein merger latest in a series
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December 21, 2009
By: Edie Lau
For The VIN News Service
Big got bigger this year in the animal health world, which witnessed marriages involving four pharmaceutical giants and two top veterinary distributors, along with assorted smaller buyouts.
The series of high-profile combinations started with Pfizer and Wyeth/Fort Dodge, and continued with Merck and Schering-Plough/Intervet, creating the No. 2 and No. 1 animal health companies in the world, respectively. The year closed with an announcement that Butler Animal Health Supply would merge operations with Henry Schein Animal Health to form the nation’s largest veterinary distribution company.
Kevin Vasquez, chairman, president and chief executive officer of Butler, and soon to be CEO of the combined Butler Schein Animal Health, told the VIN News Service that the size and rate of consolidations in the pharmaceutical industry inevitably influence the actions of distribution companies such as his.
“We want to be a more valuable partner to our vendor partners,” Vasquez said. “If we can bring equal value to each other ... it makes for a grand relationship. Our vendor partners will see us as extremely valuable, in our reach in the marketplace.”
Some observers worried that attention to the needs of clients would be lost along the way. In a commentary published Dec. 4 in his weekly electronic newsletter, Ron Brakke, a longtime veterinary consultant based in Texas wrote: “Are any of these transactions occurring based on the needs of customers? Don’t think so!!”
“Big is not necessarily better, in my view,” Brakke said in an interview. “Big, if it’s well managed, is better. You have critical-mass advantages. But I think in a lot of cases, if you’re a smaller retailer, which is what a veterinary clinic is, you may be more interested in service; quick turnaround on what your needs are. That’s not to say that a big company can’t do it, but it becomes more difficult as it gets larger.”
Several clinicians expressed similar concerns. “Fewer distributors, less competition, what will happen to prices???” wrote Dr. Robert Knapp on a Veterinary Information Network (VIN) online discussion board. Knapp practices in Columbus, Ohio, not far from Butler headquarters.
“Make no mistake, costs will go up,” predicted Dr. Les Hatfield of Phoenix, in the same discussion.
But Jon Dittrich, a practice management consultant in Tennessee, said merging can be a smart business strategy that reduces a company’s expenses, enabling it to lower rather than raise prices.
By combining operations, he said, companies are “improving their efficiency to deliver more medical goods and services as a way of protecting their profits. ...That means they can sell at a lower cost.
"I say they can,” he added. “They don’t, necessarily.”
Vasquez said he does not anticipate prices going up, except where initiated by vendors.
Rather, he said, he expects the merged company to develop products that can help clinics run more efficiently, such as through software that enhances inventory control and the ability to capture lost charges.
Vasquez was aware of the popular impression that bigger companies are less agile and said he means to avoid that trap. “We have to make sure that no matter how large we become that we continue with that culture (of being responsive to customers),” he said.
The new company, formally scheduled to come into existence on Dec. 31, will be headquartered in Butler’s home base of Dublin, Ohio. If no one is laid off — a determination yet to be made — the company will have 900 employees and serve 27,000 clinics. Separately, Butler serves 25,000 clinics; Schein, 10,000. Most of them overlap.
Schein also has an international animal health business with more than 18,000 customers in Europe. That arm of the company will not be part of Butler Schein Animal Health, although Vasquez said he expects the operations to integrate eventually.
At the outset, Schein, a publicly traded company, will own 50.1 percent of Butler Schein, while Butler’s private owners, Oak Hill Capital Partners and The Ashkin Family Group, will own the remainder. In 2011, Oak Hill will have the option of selling its remaining interest to Schein; Ashkin will have the same option five years after the deal closes.
“We envision folding the company (completely) into Henry Schein somewhere down the road,” Vasquez said. “Then we will become part of the public company.”
In the meantime, Butler Schein may buy more companies. “This team thrives on this kind of growth,” Vasquez said. “We can’t get enough.”
Like a tale of big fish feeding on small fish, the histories of Schein and Butler illustrate the trend in consolidation in veterinary distribution through the decades.
Schein was founded in 1932 by Henry and Esther Schein as a storefront pharmacy in Queens, N.Y. In the 1950s, the company shifted focus to office-based practitioners — medical, dental and veterinary. In the 1990s, the company went public, began operating abroad and went on a binge buying other companies.
Schein significantly expanded its veterinary business in 2006 with the purchase of NLS Animal Health. NLS, once known as National Logistics Service, was itself the product of the merger of Barber and Lundberg, an Oklahoma enterprise founded in 1919, with A.J. Buck and Son Inc., a Baltimore firm started in 1937. NLS in 1999 bought Sunbelt Veterinary Supply of Alabama before it was, in turn, bought by Schein.
Butler was founded in Columbus, Ohio, in 1953. Private ownership of the company changed hands several times during the decades. Butler Co. acquired DVM Manager, a veterinary practice management software company, in 2002. Two years later, it merged with Burns Veterinary Supply Inc. of Texas, which itself had merged in 1983 with Delta Veterinary Supply, giving Burns national reach.
A look at membership in the American Veterinary Distributors Association (AVDA) tells the same tale: In 2002, the association had 72 members, 32 of whom were active distributor members. Today, counting Butler and Schein as separate entities, the AVDA has 68 members, 21 of whom are distributors. In short, the association has lost 11 distributor members in seven years.
The AVDA’s numbers of associate members, which include pharmaceutical companies, likewise are affected by the move toward consolidation. “They keep buying each other up,” said AVDA Executive Director Jackie King.
Not only does that affect the association’s membership, but many of the big associate members have been dependable sponsors of AVDA annual conferences. During a meeting in April reviewing the budget for the 2010 conference, King said, the AVDA board wondered how conservatively to budget, given the economy and changes among drug giants.
"We were all nervous about commitments from our past large sponsors,” she said. “With the Pfizer/Wyeth and Merck/Intervet/Schering Plough deals pending, concern was raised about whether they would continue to be large supporters of the conference as sponsors.”
As it turns out, the sponsorship is on track to exceed previous years’ totals, King said. At last count, the association had promises for $111,000, close to last year’s total of $119,000, with more commitments expected in the new year.
Sponsorships aside, the changing landscape of veterinary distribution remains worrisome to the association. “I do know that my board, which is comprised mostly of my distributor members, is concerned about, where are we going to be in five years?” King said. “What is the industry going to look like? Will there be only five major distributor players? The smaller, regional players, will they still be around?”
The changes influence everything from AVDA board composition to mission. AVDA bylaws prohibit more than one representative per company on the association’s board. Every time two companies with board members merge, someone has to step down. “It seems like it happens to us every year!” King said.
More significantly, the AVDA is compelled to consider what kinds of services best serve its ever-changing membership. For example, King said, in the future, the association may need to redesign its networking opportunities for an industry with fewer players. And it may find that the needs of small to mid-size members are quite different from those of large members.
At the moment, King counts six distributors with national reach: Animal Health International Inc., Butler, Lextron Animal Health, MWI Veterinary Supply, Henry Schein and Webster Veterinary.
A variety of regional players still remain. “If you’re a veterinary clinic, you probably can buy from as many as six or seven distributors today,” said Brakke, the consultant.
Of course, those regional players may themselves merge or be bought out over time. King said the growth of already-big companies inevitably affects smaller players. “I think they’re always looked at as a target for acquisition. I think there’s big pressure,” she said. “I anticipate, if it’s not two big guys coming together, it’s going to be big guys buying some of the smaller or medium ones.”
VIN News Service commentaries are opinion pieces presenting insights, personal experiences and/or perspectives on topical issues by members of the veterinary community. To submit a commentary for consideration, email news@vin.com.
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