The Private Equity Veterinary Scam Making You Poorer and Killing Your Pets

In this podcast episode, Tucker Carlson interviews Joe Spector, the founder of Dutch, a telemedicine company for pets. They discuss the skyrocketing costs of veterinary care, the effects of private equity consolidation in the veterinary industry, the obstacles to telemedicine adoption for animals, and the impact on pet owners and animals themselves. Joe shares insights into how the system works, why prices keep rising, and efforts to reform veterinary care laws, alongside personal reflections on his immigrant background and motivation for starting Dutch.

The Rising Cost of Veterinary Care

Joe begins by explaining how veterinary care expenses are increasing at twice the rate of general inflation, making routine costs like annual shots and exams dramatically more expensive. He attributes this to multiple factors, including industry consolidation and cash-pay business models with little to no insurance coverage. Pet owners often face high bills because veterinary clinics rely heavily on selling additional services such as blood tests or x-rays, which creates financial and emotional pressure on owners who want the best for their pets. The fear of exorbitant costs results in many pet owners avoiding or delaying veterinary visits altogether.

Private Equity Consolidation

A significant driver of rising veterinary costs is the aggressive acquisition of independent veterinary practices by private equity firms. Joe estimates that about one-third to one-half of veterinary clinics are owned by these large corporate entities, which centralize operations to increase profits. Despite promises of efficiency and improved care, these changes have largely resulted in price increases without corresponding improvements in services or equipment. The consolidation has effectively reduced competition, allowing these firms to hike prices while delivering no added value to pet owners.

The Impact on Veterinary Care Quality

Contrary to claims that private equity ownership improves care, Joe asserts that the quality of veterinary services has often declined or stagnated. Many clinics show little modernization and offer the same services at inflated rates. Veterinarians themselves remain dedicated and passionate about animals, but they are constrained by the business models imposed by owners and investors focused on profits. This tension has created a system that pressures vets to upsell treatments and diagnostics, which may not always be necessary.

Emotional Leverage and Upselling

Veterinary clinics use the deep emotional bonds between pet owners and their animals to justify expensive procedures. From teeth cleanings under anesthesia to other costly add-ons, vets present a menu of services that can quickly escalate bills into thousands of dollars. This emotional leverage makes it difficult for owners to decline treatments, even when the benefits are unclear or the costs are prohibitive. Such dynamics contribute to financial stress and can lead to decisions that are not always aligned with the pet's best interest.

Avoidance of Veterinary Care by Pet Owners

Because of the fear of large bills and pressure to purchase expensive services, about half of Dutch's customers report that they have not visited a vet in three or more years. This avoidance is detrimental to pet health and welfare. Joe highlights the paradox where regulatory bodies and veterinary associations oppose telemedicine solutions that could make care more accessible and affordable, even as many pets go without essential care altogether.

Barriers to Telemedicine in Veterinary Care

Telemedicine for pets remains severely restricted due to laws shaped by veterinary boards and trade associations like the American Veterinary Medical Association (AVMA). These groups claim that telemedicine is unsafe and could lead to suffering or death, using emotional and sometimes misleading arguments. Behind closed doors, however, the real motive is financial: telemedicine threatens the traditional brick-and-mortar, in-person vet visit model on which these associations' members depend for income. This regulatory landscape has stifled innovation and access in the pet healthcare market.

State Regulation and Lobbying Influence

Veterinary medicine is primarily regulated at the state level, which creates a patchwork of laws governing telemedicine practices. Joe describes the intense lobbying efforts by the AVMA and similar organizations who use their financial power to maintain restrictions on telemedicine. Some states, like California, have embraced telemedicine, while others—Texas being a notable example—have resisted it despite significant advocacy. In Texas, a legal battle over freedom of speech and telemedicine is still unresolved, illustrating the ongoing tension between regulation and innovation.

The Role of Veterinary Associations and Accreditation

The AVMA not only lobbies heavily to preserve the status quo but also controls accreditation for veterinary schools, exerting significant influence over the supply of veterinarians. This gatekeeping contributes to a shortage of veterinarians, which further inflates costs due to increased demand and limited supply. Joe likens this to cartel behavior, where restrictions on entry serve to maintain high prices and maximize profits for those already in the industry.

The Supply-Demand Problem in Veterinary Medicine

There is approximately one veterinarian for every 3,000 pets in the U.S., a stark contrast to human healthcare ratios and indicative of a bottleneck in veterinary services. This shortage is partly due to high attrition rates within the profession and limitations on veterinary school growth imposed or influenced by the AVMA. The resulting scarcity of veterinarians allows for continued price increases in veterinary care, deepening the affordability crisis.

Dutch's Telemedicine Model

Dutch offers a membership-based telemedicine service for pet healthcare, charging $100 per year for up to five pets. Members have access to veterinarians via video calls, enabling timely, affordable consultations without the anxiety and expense of an in-person visit. The platform addresses common issues effectively in 90% of cases, offering peace of mind and early interventions. While Dutch still requires in-person visits for vaccines, the service includes follow-up care and access to pharmacy partners for medications. Dutch strives to improve veterinary care accessibility, especially for behavioral and anxiety issues that benefit from treatment in the pet's home environment.

Personal Motivation and Background of Joe Spector

Joe shares his immigrant story, arriving in the United States from Uzbekistan with his family under difficult circumstances. His father's struggles and dedication instilled in him a strong work ethic and appreciation for the value of a dollar. This background influences Joe's commitment to making veterinary care more affordable, reflecting his broader mission to help families facing financial hardship. His entrepreneurial experience with telemedicine company Hims and Hers laid the foundation for his work with Dutch, combining technology and healthcare accessibility.

Emotional Experiences of Pet Ownership

Throughout the conversation, both Joe and Tucker emphasize the strong emotional connection between people and their pets. The suffering that pets endure from stressful vet visits and expensive medical procedures is a major concern. Telemedicine offers the possibility of reducing this stress, keeping animals in familiar environments during consultations. Behavioral issues especially benefit from remote treatment. The importance of pets in family life and their positive health impacts on humans are highlighted, reinforcing the need for humane, accessible veterinary care.

The Challenge of Changing the Veterinary Industry

Joe discusses the long, difficult process of advocating for telemedicine adoption and legislative reform. Unlike human telemedicine, which took years to become mainstream, the veterinary industry remains resistant. Traditional groups prioritize financial self-interest over pet welfare, making grassroots efforts essential. Dutch and allied organizations have achieved some legislative changes in states like Florida and Arizona but face continuous pushback elsewhere. Websites like savepuppies.com facilitate public advocacy to influence lawmakers and counter powerful lobbies.

The Future State of Veterinary Care

Despite numerous obstacles, Joe is optimistic about progress. Legal battles and lobbying efforts continue, and telemedicine is gradually gaining acceptance. He stresses the need for transparency, regulatory reform, and market innovation to break monopoly power and ensure affordable, high-quality care for pets. Dutch serves as a model for integrating technology with compassionate veterinary services that prioritize pet and owner needs over profit maximization.