What current economic indicators mean for veterinarians
Bottom line
Veterinary practices are operating in a tighter economic environment, and that’s the central takeaway from EquiManagement’s latest Business of Practice podcast featuring AVMA Chief Economist Katelyn McCullock. McCullock’s message, as described by EquiManagement, is that veterinarians should keep their attention on a few core indicators rather than reacting to every headline. Broader industry data backs that up: AVMA’s recent economic reporting says the U.S. economy has been cooling, inflation is still eating into real income gains, and veterinary medicine remains in a tight labor market. At the same time, Vetsource said visits per practice fell 3.1% in 2025, including a 3.8% drop in wellness visits, suggesting many pet parents are spacing out care as household budgets stay under pressure. EquiManagement’s related podcast episode on affordability, with CareCredit’s Kate Hayes, points to the same shift from another angle: practices are being pushed to think more deliberately about how clients pay for care. (equimanagement.com)
Why it matters: For veterinary professionals, the practical implication isn’t simply “clients are spending less.” It’s that demand may be softer or less predictable, even while payroll, supplies, and other operating costs remain high. Industry commentary from AAHA describes hospitals being squeezed by rising labor, drug, and supply costs on one side and more price-sensitive clients on the other. That makes the basics McCullock reportedly emphasized especially relevant now: know your numbers, protect margins without losing client trust, and focus on the parts of practice performance you can control, including team efficiency, preventive care compliance, and payment conversations. In equine and mixed settings especially, where revenue often depends heavily on doctor-generated billable work, those decisions can directly affect workload, retention, and profitability. (aaha.org)
What to watch: Expect more attention in 2026 to visit trends, client affordability tools, and whether inflation-adjusted veterinary revenue can hold up if preventive care demand stays soft. (aaha.org)
Veterinary economics may be getting less forgiving, and EquiManagement’s Business of Practice episode with AVMA Chief Economist Katelyn McCullock lands at a moment when many practices are already feeling that pressure. According to EquiManagement’s summary, McCullock explained what current economic indicators mean for veterinary practices and highlighted three areas veterinarians should focus on in this climate. While the full episode framing is aimed at equine professionals, the themes line up with broader industry signals across veterinary medicine: softer client demand, persistent cost pressure, and a need for more disciplined business decision-making. (equimanagement.com)
The backdrop has been building for more than a year. AVMA’s recent Economic State of the Veterinary Profession reporting says the broader U.S. economy is cooling, inflation continues to erode purchasing power, and veterinary labor remains tight, even if some indicators have eased from peak-pandemic distortion. A separate AVMA-backed long-range analysis published in late 2024 also warned that veterinary demand remains sensitive to household disposable income and broader economic conditions. In other words, this isn’t just a story about practice management preferences; it’s about macroeconomics showing up in exam-room decisions. (ebusiness.avma.org)
That pressure is increasingly visible in practice-level data. Vetsource said in January 2026 that, across nearly 6,500 U.S. practices, visits were down 3.1% in 2025 versus the prior year, with wellness visits down 3.8%. Its 2026 white paper says practices are dealing with slower revenue growth and growing pressure to keep clients engaged. AAHA has described the same pattern in plain terms: pet parents are delaying routine appointments, postponing elective procedures, and scrutinizing invoices more closely. Those patterns matter because even when top-line revenue holds, fewer visits can mean weaker preventive compliance, more deferred care, and less room for operational inefficiency. (vetsource.com)
EquiManagement’s companion episode on helping clients afford veterinary care adds another piece of the picture. In that discussion, Kate Hayes of CareCredit focused on strategies that can help clients move forward with treatment during difficult economic periods. CareCredit’s provider-facing materials make the business case directly, arguing that financing tools can help practices get paid while giving clients a way to spread costs over time. That won’t solve affordability on its own, but it reflects a wider industry shift: payment strategy is no longer a back-office issue. It’s becoming part of the clinical workflow, especially when teams are trying to preserve adherence without discounting care indiscriminately. (carecredit.com)
Expert and industry commentary around the market is notably consistent. AAHA recently wrote that practices are being squeezed from both sides, facing higher labor, drug, and supply costs while clients become more cautious. Another AAHA analysis said forecasters expect negative growth in client visit numbers through at least mid-2026. Meanwhile, Vetsource has been urging practices to respond not with blanket price competition, but with stronger retention, more personalized communication, and better use of data. Taken together, that supports the likely thrust of McCullock’s advice: focus less on predicting every macro swing and more on the operating levers inside the practice. (aaha.org)
Why it matters: For veterinarians and practice leaders, economic indicators matter most when they change behavior inside the hospital. If pet parents are stretching time between visits, practices may need to pay closer attention to reminder systems, estimates, treatment prioritization, wellness plan design, and staff scripting around cost conversations. If inflation is still outpacing the real value of income gains, teams may also need more discipline around pricing reviews, inventory controls, scheduling efficiency, and doctor time. In equine practice, that challenge can be even sharper because a large share of revenue is tied directly to veterinarian billable activity, leaving less margin for waste and less flexibility when staffing is tight. (ebusiness.avma.org)
There’s also a workforce dimension. Economic stress doesn’t just affect clients; it affects hiring, retention, and burnout. EquiManagement recently noted that many equine veterinarians want to reduce working hours, while staffing shortages make that difficult without structural change. If practices respond to a softer market by asking doctors to absorb more inefficiency, that can worsen the very retention problems the profession is already trying to solve. A more durable response is likely to involve clearer financial management, better technician utilization, and more intentional client affordability pathways. (equimanagement.com)
What to watch: The next signals to monitor are whether visit declines stabilize in 2026, how long affordability pressure persists, and whether practices can maintain preventive care utilization without undermining margins. If current trends continue, expect more veterinary business guidance to center on retention, payment options, labor efficiency, and data-driven decision-making rather than pure growth. (vetsource.com)