The corporatization of veterinary medicine and its impact on independent practices

Abstract

This paper examines the corporatization of veterinary medicine and its impact on independent veterinary practices in the United States using a longitudinal data set from 2000 to 2021. Results show independent practices are 1.9% more likely to exit after corporate entry, with employment and revenue dropping 5.7% and 6.9%, respectively. Urban areas experience nearly double the impact of rural ones. Event studies reveal a delayed response, with revenue effects becoming statistically significant 6 years post-entry, reaching 18.7% in urban and 13.3% in rural areas. Co-location benefits have diminished since 2010, highlighting rising market power and adverse competition from corporate practices.