This article originally appeared in the Spring 2025 issue of EquiManagement. Sign up here for a FREE subscription to EquiManagement’s quarterly digital or print magazine and any special issues.
Top Take-Homes From the Business News Hour
At the 2024 American Association of Equine Practitioners (AAEP) Convention, Jean-Yin Tan, DVM, DACVIM, MBA; Stacey Cordivano, DVM; and Shane Baird, DVM, led the ever-popular Business News Hour to kick off the business sessions. The News Hour aims to inform equine practitioners of current industry and business trends that will empower them to reach their goals in workplace wellness, profitability, and meeting client and patient needs.
Current Economic Trends
Cordivano began the session with an overview of current economic trends. She said unemployment had been holding steady at 4.1% for the past several months, and since March 2024, inflation had decelerated relatively consistently. She reported that economists predict interest rates to decline in the year ahead, but the path
is uncertain.
In U.S. business economic news, she reported that the average workweek for all employees on private nonfarm payrolls was 34.3 hours, as of October. The Small Business Optimism Index was in its 34th consecutive month below the 50-year average of 98, and the Uncertainty Index rose to 110, which is the highest reading ever recorded, she added. Overall, she said, these numbers indicated business owners are somewhat hesitant about the future, even though the S&P had climbed about 6% since the beginning of November.
Veterinary industry economics indicate a slowdown in visits at companion animal practices, Cordivano said, referencing AVMA Chief Economist Katelyn McCullock’s prediction of a recession in the near future, with a pullback on veterinary spending due to financial pressures on consumer spending. However, “the concerns around spending should not be taken as a suggestion that we stop increasing our prices. Small animal practice has gotten way ahead of us in the equine field as far as charging appropriately,” she said. Looking at the economics of the veterinary profession on a large scale, Cordivano said average gross revenue by practice type is down slightly for companion animal, equine, and food animal practices.
Baird continued the economics discussion by drilling into the equine veterinary industry specifically. The American Horse Council (AHC) Economic Impact Study released in January 2024 showed that despite lower horse counts nationally, there were more jobs associated with and more dollars spent in the equine industry in 2023 than reported in 2017.
The 2024 AVMA AAEP Economic State of the Equine Veterinary Profession Report indicated that five years ago, equine veterinarians worked an average of 53 hours per week. While hours reached a peak of 60 in 2022, that average dropped to 56 hours per week in 2023. This is significantly more than the 42 hours the average veterinarian worked in the AVMA Census Report. “It is important to note that both of those numbers are well above the national average for all Americans at 34 hours per week,” Baird said.
Demographics in Equine Practice
Next, Baird reported on equine veterinary demographics. Of the 3,785 practitioners in equine-exclusive practice in the U.S., 60% are female and 40% are male. The average age is 49 years, 97% are Caucasian/white, and 76% are in ambulatory general practice, he reported. “It appears that the road warriors are increasing in numbers,” he said. The 2024 report showed a marked increase in solo practitioners compared to the 2017 AVMA AAEP Equine report, with 37% of respondents identifying as solo practitioners in 2017 versus 64% in 2022. “It is generally believed that younger generations have a preference for democratic work structure and want to work where their opinions are valued,” he said. “Is this possibly the cause of the shift and increase in solo practitioners?”
The Shift Toward Corporatization
Mergers and acquisitions continue to occur in the veterinary space, with 4% of equine vets working at practices owned by a corporate consolidator in the 2024 report versus just 1% in the 2017 report.
Baird shared the results of a Colorado State University study titled, “Differences in perceptions and satisfaction exist among veterinarians employed at corporate versus privately owned veterinary clinics.” It showed that employees from corporate and private practice positions were equally satisfied with the benefits they receive, though benefits were usually more lucrative in corporate employment. Many hospital environment factors, however, led to higher satisfaction scores by private practice employees. Private practice might be more nimble and able accommodate new or different drugs and new equipment. It might also provide more interoffice collegiality between doctors, management, and staff. Interestingly, Baird continued, this issue has led to a lawsuit recently, where the original owner of a practice is suing his corporate partner for making the practice less collegial and a less desirable place to work.
Communicating About Pricing
With rising prices, veterinarians must do a better job communicating the value of veterinary service with clients, especially through e-communication and clinic websites, Baird said, citing a study reporting that of 128 websites, two-thirds had no mention of the benefit of services to the client. In client communication, he advised, “veterinarians should not only discuss the services offered but expound on the function and benefits of those services to the client and patient to give a better understanding of pricing.”
Baird then cited cautionary results from an elasticity of demand study from the University of Kentucky, where nearly 5,000 horse owners were surveyed about their sensitivity to price increases for annual vaccinations, lameness exams, and emergency colic surgery and the changes in demand that might result. The data showed a relatively elastic relationship in all categories, meaning these consumers are sensitive to pricing, and price increases will alter demand. They found that fee increases, regardless of horse value or household income, could affect demand and resulting total revenue.
Education and Early Career
Tan described the importance of attracting veterinary students to equine practice to ensure the availability of future equine veterinary care. “With 13 new schools now in the pipeline for accreditation, on top of the 33 accredited U.S. vet colleges, we could have a 40% increase in vets in 10 years,” she said. The number of new veterinary schools being opened or planned are due to worries about a workforce shortage, she said, but a recent study from Brakke Consulting showed no shortage of veterinarians—and, in fact, a potential excess—by 2030. In November 2024, research published in JAVMA provided a forecast for labor markets for veterinarians; it, too, predicted no persistent labor shortage. Tan reported that the data showed veterinary service prices are increasing faster than the rest of the economy, resulting in slowing and reversal of growth in revenue and visits. This will result in downward pressure on prices as the number of veterinarians and labor-saving technologies increase, she explained.
Tan reported on the current student experience during their clinical years. She said 65 fourth-year students at Penn Vet signed a letter in August 2024 claiming they were being used for labor instead of education and that their work hours exceeded 100 per week. At Iowa State, a 2023 article stated that large animal ICU students said they worked long shifts, sometimes scheduled seven days a week, violating the 80 hours per week in the 2019 SAVMA guidelines. Notably, she said, in 2024, SAVMA guidelines decreased duty hours from 80 to a 60-hour limit. “This might have a direct impact on your practices if you partner with vet schools in the distributive model,” she said.
“Your satisfaction and ability to thrive at work is very similar to your ability to thrive at school,” said Tan. She shared the findings of a 2024 educational report showing that social relationships with faculty, staff, and peers help with psychological needs such as competence, autonomy, and relatedness.
To get veterinary students excited about careers in equine medicine, Tan reported on the innovative ways equine veterinarians are tackling the decreasing workforce, citing the multiple initiatives practices have collaborated to bring forward. She presented data showing that, in 2023, 6.1% of new graduates entered equine practice as interns or associates without an internship, in contrast with the 8.6% in 2014. This percentage is well below companion and mixed animal practice but above food animal and public practice.
People entering equine practice directly after graduation value mentorship above all other aspects of the employment offers they receive, Tan continued. Figures from the 2024 AVMA AAEP Economic State of the Profession Report show the top three things associates entering equine practice without internships valued when selecting what practice they work for are mentorship, colleagues, and practice location. Compensation and work hours, followed by well-being, rank lower.
Legislative News
Baird said an investigation into unfair pricing in the United Kingdom, where most practices are corporately owned, is progressing. The investigation was spurred by concerns that some veterinary practices might be charging excessively high fees for their services, making it difficult for pet owners to afford necessary care for their animals. In the U.S., “it appears that the People and Animals Well-being (PAW) Act will move through Congress with bipartisan support,” he said. “This will allow flex or health savings accounts to be used for veterinary care or pet insurance plans, which as written, is currently limited at $1,000.”
With regard to noncompete agreements, at the national level nearly 20% of U.S. workers are bound by noncompetes. The proposed Federal Trade Commission rule would have banned them at the national level, but recent court decisions and the new administration will likely put the issue back in the hands of the states. Currently, four states ban noncompetes, and 33 plus D.C. restrict the use of noncompetes. Research has shown that noncompetes suppress wages, reduce job mobility, and stifle innovation, while at the same time they allow and encourage investment in employees and protect intellectual property, Baird explained.
An update on the ever-evolving Combating Illicit Xylazine Act revealed that while the bill has passed the House, it is now in the Senate Committee on Homeland Security and Governmental Affairs. Currently, the bill has set xylazine as a Schedule III controlled substance but protects current legitimate uses of the drug and requires no capital expenditures to facilities by manufacturers, he stated. Without national legislation, xylazine restrictions are being enacted state by state. This creates a patchwork of differing rules for manufacturers and distributors to navigate, increasing the likelihood of supply disruption. Since the start of 2023, 26 states have considered xylazine legislation or regulations. Congress is working to amend the Controlled Substances Act to ensure the common uses of xylazine remain legal and include provisions to help maintain its availability and track supply. An important piece for practice owners is that as currently written, veterinarians would have 60 days after enactment to comply with record-keeping and inventory, he shared.
The Veterinary Practice Act landscape is changing constantly, both at the state and national level, especially with regard to the Veterinary Client Patient Relationship (VCPR), Baird continued. State Practice Acts are changing regularly to meet industry and consumer demands. Currently, seven states (plus D.C.) allow for establishment of VCPR via telemedicine, nine states require a physical exam, and nine states have language that explicitly bans a telemedicine VCPR. He said you can keep up to date with the situation in your state at vvca.org/resources.
Of deep concern to many veterinarians was the November 2024 passage of Proposition 129 in Colorado, which enshrined the establishment of a midlevel practitioner/veterinary professional associate with testing, accreditation of programs, and licensure requirements to be established by Jan. 15, 2027, he said. This would be a master’s-level-trained individual who would be allowed to practice veterinary medicine, including diagnosing, creating treatment plans, and performing surgery, with all liability burdening the license of a veterinarian working in the practice.
To increase the legal roles of licensed veterinary technicians, Colorado, Maryland, Minnesota, New Hampshire, and Utah are among the states altering their practice acts to further define veterinary supervision and increase task lists that can be delegated to credentialed veterinary technicians (CVTs). This would also change their licensing process, Baird said.
Veterinary Retention and Sustainability
Workplace culture plays a strong role in the retention of equine veterinarians, said Tan. “If we hope to have people to hire and sell our practices to one day, we need to focus on continuing to improve the culture within equine veterinary businesses,” she said. “This includes everything from helping individuals to feel safe and supported all the way to mentorship and compensation.”
Unfortunately, the 2024 AVMA AAEP Economic report showed large percentages of recent graduates are still considering leaving equine practice, including 29% of those who graduated in 2020-2021.
Tan cited a 2024 study about the tech industry that showed how micro-inclusions, or small interactions with positive treatment, especially from members of the dominant group (men in this case), could help women feel more committed to the company and more valued at work. “Micro-inclusions aren’t about being nice but about valuing someone and treating them like an equal partner,” she said.
From 2022 to 2024, the AAEP Commission for Equine Veterinary Sustainability’s Emergency Subcommittee tackled strategies for managing after-hours care, which produced a resource Tan shared. Solutions she highlighted included the formation of emergency cooperatives, dedicated emergency-only practices, offering emergency coverage only during certain hours, having a haul-in emergency policy, and using a telemedicine triage service.
When considering the obstacles of low salaries and high educational debt, Tan pointed out that equine practice owners earn $90,000 more, as a median, than associates, according to the 2024 AVMA Census report. Because ambulatory solo practice has low fixed costs and allows you to increase your salary and your self-determination, she questioned whether practice ownership is the key to success and satisfaction in equine practice. Tan shared data from the 2024 AVMA AAEP report showing that lifestyle satisfaction increases from about 50% to 70% when veterinarians go from equine associates to practice owners.
Compensation
Cordivano highlighted an interesting note from the AVMA Economic Summit: The income gap between early career veterinarians and all veterinarians is compressing. In the early 2000s, the gap was 93%, but as of 2024 it has decreased to 19%. “This is likely a result of recruitment efforts and surely will have an effect on attraction and retention of equine practitioners going forward,” she said.
The 2023 AVMA Senior Survey revealed a huge jump in equine salary offers, she continued. Among new graduates who accepted a position in private practice without an internship, those accepting full-time positions in companion-animal-predominant practice secured the highest starting salary, at an average of $133,000. While positions in equine practice previously lagged dramatically in terms of compensation, in 2023 that gap narrowed, with average starting salaries rising to just over $94,000. Also of note, she reported, the national average compensation for a new graduate pursuing an equine internship increased to $45,000—but that was still 25% lower than a companion animal internship.
Benefits are important parts of a compensation package, and the 2024 AAEP AVMA Economic study showed just a small percentage of equine practitioners are receiving loan repayment and profit sharing. Because grasping the total value of a compensation package can be difficult, said Cordivano, the AAEP Compensation Subcommittee developed a fillable, easy-to-use worksheet that helps veterinarians fully understand the value of their entire employment package. A benefits survey from the AAEP Practice Culture Subcommittee can also help you understand which benefits are of highest importance to your team members, so you can offer packages your employees value, she added. Both resources are available on the AAEP website.
“Many practitioners are probably shaking their heads and wondering how they could possibly increase associate salaries to these levels or hire a recent graduate,” Cordivano said. Solutions to this problem hinge on increasing practice profitability by increasing revenue and decreasing expenses, she stated. This might require raising fees to levels that will support more robust income generation. The 2023 fee survey published by the AAEP might be of some assistance in this effort.
Support Staff Trends
Baird offered information on staff utilization. According to the AVMA Practice Owners survey, the percentage of practices employing nonveterinary staff is on the rise for all positions, from CVTs to practice managers and veterinary assistants. Use of veterinary assistants increased from 57% of practices in 2019 to almost 85% in 2023, perhaps highlighting a shortage of credentialed technicians. At the AVMA Economic Summit, it was reported that companion-animal-exclusive practices have a 1-to-1 veterinarian to credentialed technician ratio compared to equine-exclusive practices at a 1-to-0.26 ratio.
In 2024, the American Association of Equine Veterinary Technicians released a series of resources with guidelines to help both the veterinarian and the CVT practice at the top of their license, Baird explained. You can find individual state regulations on the American Association of Veterinary State Boards (AAVSB) website. Those rules and regulations should outline not only the tasks but also the level of supervision required by the supervising veterinarian.
Technology
To conclude, Tan spoke about technological advances. While ChatGPT can be efficient and user-friendly and provides some attractive services, you must exercise caution, she warned. A 2024 survey by the American Animal Hospital Association (AAHA) showed that 84% of respondents were familiar with AI in veterinary medicine and most were optimistic, with almost 40% of veterinary professionals using practical workplace applications for administrative and imaging tasks and about 40% interested in using AI in their practice.
She also shared a study out of Canada in which 567 survey participants ranked their preferences for communication with vets: face-to-face, telephone, videoconferencing, email, synchronous texting, and asynchronous texting. The results showed that pet owners’ confidence in being able to establish rapport with the vet and confidence in excellence of pet care was significantly lower for virtual vs. face-to-face communication, with 85% preferring in-person interactions over telephone and videoconferencing. Influencing factors included age and comfort using videoconferencing technology.
The Stay Factor
Caitlin Freeny, DVM, and Ciera Guardia, DVM, gave a presentation about their individual journeys to remaining in equine veterinary medicine through owning their own practices. They said, “the goal is not just surviving but thriving” in careers, personal life, and financial security. “Staying can seem insurmountable due to traditional expectations, generational differences in educational costs and family support, low salaries, long hours, the need for emergency coverage, and the physical dangers of the job,” they added.
The solution, they opined, is entrepreneurship. By creating a practice uniquely shaped to your needs, you gain scheduling flexibility, freedom to integrate with your family’s needs, an ability to evolve depending on the season of your life, and a choice in where to give your kindness and generosity. “Freedom of choice is powerful,” they said, noting it increases many veterinarians’ desire to stay in equine practice.
Ownership affords control over pricing, services offered, hours of operation, practice values, mission, vision, and branding. Owners can use profits to pay off educational loans. Making a living while being in charge of the finances and caseload makes a positive difference. “Don’t be afraid to do something different than others,” they said. “You are in control of your destiny!”
Networking Groups and Sustainability
Miranda Gosselin, DVM, and Amy Grice, VMD, MBA, facilitated a Table Topic on networking groups’ impact on sustainability in equine practice. To begin, they outlined the basic structure and cost of groups such as Decade One, Starting Gate, EPIC, VMG, and Embarq.
Decade One is a program for equine veterinarians in their first 10 years of practice or practice ownership. Grice founded Decade One in 2015, encouraged and mentored by Andy Clark, DVM, MBA. Of the eight groups that have completed the three-year program, 93% of members are still in equine practice. Currently, eight additional groups are actively working through the program, meeting for business content in person twice yearly and on Zoom monthly. In 2025, newly formed Decade One groups will follow a self-paced format, with content accessed online and discussed at monthly facilitated meetings and at a single in-person meeting held in conjunction with the annual Sustainability in Equine Practice (SEP) meeting, a retreat designed to support equine veterinarian well-being. There are no onboarding fees, and the annual tuition in 2025 is $750. The AAEP’s Foundation for the Horse has generously provided scholarships for half the tuition to AAEP applicants for the past several years. Veterinarians can learn more at decadeonevet.com.
Starting Gate, a partner program of Decade One for equine-oriented veterinary students, provides virtual meetings on business-related content relevant to future equine doctors. The content includes topics such as employment agreements, negotiation, budgeting, managing educational loans, parenting, perfectionism, and choosing externships/internships. The annual tuition in 2025 is $50. Since 2024, the AAEP’s Foundation for the Horse has generously provided full tuition scholarships to AAEP Student Chapter members. Students interested in the program can learn more at decadeonevet.com/starting-gate.
Equine Purchasing & Inventory Company (EPIC) is a nonprofit group formed in 2018. EPIC board member Gosselin described the cooperative as a buying group and inventory education company focused on helping smaller practices compete in an environment where large corporations have the advantage of economies of scale in their negotiations for pharmaceutical prices. By pooling the buying power of many small practices, this group has helped hundreds of practices reduce their inventory expenditures while providing a critical knowledge base of inventory management through monthly webinars and an annual educational symposium. In addition, the group developed a website in 2022 for evaluating externships and internships called Equine Vetted (equinevetted.com). One-time onboarding costs are $200 per practice veterinarian, capped at $1,000. Practices then pay $150 quarterly. The monthly webinars and annual symposium have no registration fees, and all members are encouraged to attend. Learn more at epiccooperative.com.
Veterinary Management Groups (VMG), under the umbrella of the Covetrus-owned Veterinary Study Groups, provides a study group environment, community, resources, and a shared commitment to professional growth for 60-plus study groups, including five equine-specific groups, explained Jim Zeliff, DVM, MBA, a part-time employee of VMG. Each VMG group has 15-20 practice owners with businesses similar in size yet geographically distant. Members travel to meet in person twice a year for three to four days. Onboarding is $3,220. Annual membership is $2,128, with annual meeting costs of $6,000-$8,000 per year plus travel. These costs are somewhat offset by industry sponsorship and a buying group. Learn more at myvmg.com.
EmbarQ is a new program in 2025 from VSG for small practices of one to two full-time-equivalent veterinarians. These groups will have a format similar to traditional VMG groups but will require less time away from the practice, meeting once a year in person and once a year virtually. The groups will provide all the benefits of a traditional VMG but will require less financial commitment. Annual costs are estimated to be about $6,000. Learn more at myvmg.com.
Networking groups can help business owners save money, fine-tune management, and build connections. They can also help veterinarians of all ages and career stages find community and learn nonclinical skills such as leadership, finances, and communication.
Related Reading
- Ethics of Emergency Care in Equine Practice
- How to Achieve Your Compensation Goals in Equine Practice
- Responding to Client Complaints and Avoiding Malpractice in Equine Practice
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