Economic warning lights are flashing for veterinary practices
Economic indicators are sending a mixed but actionable signal to veterinarians: practices aren’t facing a single cliff event, but they are moving through a period of slower growth, cautious client spending, and persistent cost pressure. That was the focus of EquiManagement’s latest Business of Practice coverage, in which AVMA Chief Economist Katelyn McCullock discussed what current economic indicators mean for veterinary practices and what veterinarians should prioritize in this climate. (veterinaryanalytics.com)
The backdrop has been building for more than a year. AVMA’s 2025 Report on the Economic State of the Veterinary Profession says veterinary medicine is still operating in a tight labor market, even as the broader U.S. economy shows signs of cooling and inflation continues to erode purchasing power. In parallel, industry speakers and practice consultants have been warning that softer consumer confidence is translating into more selective spending on veterinary care, especially when pet parents are weighing preventive services, diagnostics, or elective procedures against other household costs. (ebusiness.avma.org)
Recent veterinary business reporting helps fill in the operational picture behind those macro signals. At the 2025 VetPartners Mid-Year Conference, McCullock and AVMA economist Christopher Doherty said overall veterinary visits were down 3% year over year, while revenue was still up 2.2%, suggesting price increases were offsetting weaker traffic. In another EquiManagement report from the 2024 AAEP Convention, speakers pointed to a slowdown in companion animal visits and a likely pullback in veterinary spending tied to pressure on consumer budgets, while cautioning practices not to interpret that as a reason to stop pricing appropriately. (veterinaryanalytics.com)
That tension, fewer visits but stable or modestly growing revenue, is showing up across the profession. AAHA reported in April 2025 that practices were contending with hiring costs, tariff-related supply concerns, and declining visits, with consultant Karen Felsted warning that financially stressed pet parents tend to cut back because veterinary care is not always treated as essential spending. By January 2026, AAHA was also reporting that some hospitals were seeing more clients choose conservative treatment plans or decline preventive screening, while practices continued targeted price increases to cover vendor, laboratory, medication, and wage costs. (aaha.org)
EquiManagement’s related affordability coverage adds another layer to the story. Its separate Business of Practice episode featuring Kate Hayes, vice president of equine expansion at CareCredit, focused on ways to help clients afford care during challenging economic periods, reinforcing that payment flexibility is now a strategic issue, not just a front-desk one. That aligns with what practice leaders are doing on the ground: sharing third-party financing options, discounting selected preventive panels, growing online pharmacy revenue, and becoming more deliberate about inventory, debt, and cash reserves. (aaha.org)
Why it matters: For veterinary professionals, the most important takeaway may be that revenue alone is becoming a less reliable proxy for practice health. If prices rise while visit counts soften, a clinic can look stable on paper while losing preventive touchpoints, deferring case acceptance, and putting more strain on teams to maintain output. AVMA’s report specifically encourages practices to review compensation and benefits, engage support staff to their full potential, and adopt automated tools such as online scheduling, reminders, and practice-directed pharmacy systems. In equine settings, the efficiency challenge can be even sharper: EquiManagement’s review of the 2024 AVMA-AAEP economic report noted that equine veterinarians averaged 56 hours of work per week in 2023, well above companion animal peers. (ebusiness.avma.org)
The industry reaction so far is practical rather than alarmist. Consultants and hospital leaders are urging practices to focus on controllables: client service, cost discipline, pricing strategy, staffing efficiency, and affordability conversations that preserve care without undermining medical standards. One hospital director told AAHA that the team works with every client to find a plan that meets both the pet’s medical needs and the family’s budget, while another leader argued the profession needs to get better at presenting treatment options across a spectrum of care. (aaha.org)
What to watch: Through 2026, veterinary leaders will be watching whether consumer caution deepens into a more prolonged downturn in visits, and whether practices can offset that pressure through better workflow, stronger technician utilization, smarter pricing, and more structured financial options for pet parents. Forecasts cited by AAHA suggest negative growth in client visit numbers could persist into mid-2026, so the next phase will likely be defined by operational discipline, not quick rebounds. (aaha.org)