As in the United States, large brands have taken ownership of veterinary clinics in Quebec in recent years. Multinationals like Nestlé and Mars are linked to some of these groups. A reality that is little known to the general public and which, according to some, creates upward pressure on veterinary costs, in addition to raising ethical concerns. These major brands respond that joining forces makes it possible to offer better care to animals.
The largest conglomerate in Quebec is the Daubigny Veterinary Group, which owns 105 clinics, and whose growth does not seem to be over. In 2017, the group, which had around ten establishments in Quebec, merged with VetStrategy, the largest provider of veterinary care in Canada. “We needed a partnership, a solid structure in terms of administration, marketing, human resources,” explains the DD Anne Fortin, medical director of operations and shareholder of Daubigny.
In 2021, VetStrategy was purchased by IVC Evidensia, the leading veterinary care provider in Europe. This multinational belongs to the Swedish investment fund EQT Partners, which thus became the majority shareholder of Daubigny. Other shareholders in the fund include Nestlé, which owns the Purina pet food brand.
The second largest player in Quebec is Vet et Nous, formerly known as Vétéri Medic, which has 34 establishments. “All the clinics we acquired are […] came to see us to tell us: “We don’t have veterinarians to buy our clinics, we want to retire or we want to stop doing management”,” explains Dr Sébastien Kfoury, shareholder, president and director of medical services of Vet et Nous.
In 2013, the company joined forces with Canadian company AVC, which was later purchased by American VCA Antech. In 2017, it was integrated into the American multinational Mars – known for its chocolate bars – which is now the majority shareholder of Vet et Nous. The Mars Petcare division owns Royal Canin food.
Since the arrival of large groups in the province, “26% of establishments have fallen into the hands of conglomerates,” worries Noël Grospellier, vice-president of marketing, IT and innovation for the DMV group. This group, which includes 30 Passionimo veterinary clinics and four CENTREDMVET for emergencies, is “the last independent group owned and managed 100% by Quebec veterinarians,” he says.
Voting shares
Nothing in the regulations in force prevents multinationals from becoming shareholders of veterinary clinics in Quebec. The Order of Veterinary Doctors of Quebec (OMVQ), however, specifies that shares with voting rights must be held by veterinary doctors. “Annually, companies must declare their shareholding to the Order, which verifies that the regulations are respected,” adds the regulatory body.
Many see this as a vagueness in the regulations, which opens the door to takeovers putting the independence of veterinarians at risk. “The regulations on corporate practice adopted in 2008 include articles that are difficult to interpret in the current context of multi-level multinationals,” notes the DD Caroline Kilsdonk, former president of the Order, who hopes that the Office des professions du Québec will look into this issue which also affects other professions.
Preserve independence
A sign that the arrival of foreign investors is worrying, the Order’s congress, which took place at the end of November, focused on preserving the professional independence of veterinarians. “We want animal owners to have the assurance that the veterinarian’s recommendations, the treatments he offers or the medications he prescribes are free from any commercial, profitability or other influence,” explained the president of the OMVQ, Dr Gaston Rioux.
He also met with representatives of major brands this fall to “raise their awareness as employers of their obligations towards veterinary doctors”, specifies the Order, recalling that professional independence, which is supervised by the code of ethics, “ensures the bond of trust between the veterinarian and the general public”.
For the Dr Sébastien Kfoury of Vet et Nous, the risk of an owner putting financial pressure on his veterinarians has always been present, whether this owner is an independent veterinarian, a small group or a large conglomerate. “We take it for granted that Americans are worse than Quebec investors. […] But it always depends on the ethics of the owner,” he maintains.
The Royal Canin brand is not sold more than other food brands in Vet et Nous establishments, he assures. “It doesn’t change anything that Royal Canin is linked to us. […] There should never be reasons other than quality or medical need to guide the veterinarian’s recommendations. »
It doesn’t change anything that Royal Canin is linked to us. […] There should never be reasons other than quality or medical need to guide the veterinarian’s recommendations.
On the Daubigny side, the Dr Mathieu Ouellet, shareholder and specialist in internal medicine, indicates that “if at a specific time, Purina food [propriété de Nestlé] was recommended [par un vétérinaire de Daubigny], it’s because the professional thought it was the best thing for this patient.” Daubigny “firmly believes” in professional independence, he adds.
Price effects
According to several stakeholders interviewed, the arrival of large brands in Quebec has had an increasing effect on the fees charged for veterinary care. The duty documented this increase earlier this week.
“It is they who triggered this inflation by the acquisition of veterinary establishments at high prices and by the increase in salaries to try to corner the market, because we are all in a situation of shortage”, denounces Noël Grospellier, from the independent DMV group.
The DD Caroline Kilsdonk maintains that currently “owner veterinarians who decide to retire are offered approximately double what veterinarians here would be willing to pay to buy the same clinic.” Daily life The Voice of the East revealed in November that Daubigny now owns five of the nine veterinary clinics in Sherbrooke, which undermines the principle of competition.
Both Daubigny and Vet et Nous recognize that in the last year they have increased prices which exceed the rate of inflation, in particular to offset an increase in salaries granted to veterinarians and veterinary technicians.
The DD Anne Fortin, from Daubigny, argues that this increase in costs can also be explained by the “great evolution in the provision of care” for animals, which results in an increase in specialties and in the purchase of equipment. peak. The Dr Kfoury adds that “there are services that we can offer to improve medical quality that do not exist in an individual clinic.”
The fact remains that in the center of Montreal, a clinic belonging to Daubigny charges $103 for a basic consultation, while within a 4 kilometer radius, two clinics not belonging to a large brand offer the same service for $78 or $89.
To “keep care accessible”, a few days ago CENTREDMVET lowered the price for a specialized operation, dropping it from $200 to $145. “We said to ourselves that we cannot continue like this. We need to help the owners. »
The DD Caroline Kilsdonk believes that pet owners need to be informed about the dynamics shaking up the veterinary clinic environment. “It is possible that in small structures, the power is located closer to the veterinarian-client-patient triangle and that this allows more flexibility,” she says. I encourage people to think about the types of businesses they want to encourage. »