What economic indicators are signaling for veterinary practices
Veterinary economics are moving from a background concern to a front-line practice issue. In EquiManagement’s latest Business of Practice coverage, AVMA chief economist Katelyn McCullock discussed what current economic indicators mean for veterinarians, while a related episode with CareCredit’s Kate Hayes addressed how practices can help clients afford care during tighter financial conditions. Together, the episodes reflect a broader industry shift: many practices are seeing softer demand, even as top-line revenue remains positive. (aiv-vet.com)
The backdrop has been building for more than a year. At an October 2024 veterinary business forum, McCullock pointed to persistent inflation, weaker consumer spending power, rising debt stress, and an inverted yield curve as warning signs for veterinary demand. Vetsource data presented alongside that economic outlook showed a 2.3% drop in patient visits from August 2023 to August 2024, while revenue rose 3.9%, largely because of pricing. Historical comparisons were also telling: visit counts had already been weakening from 2021 through 2023, suggesting the issue is not just seasonal softness, but a longer reset in client behavior after the pandemic surge. (aiv-vet.com)
That reset appears to have continued. Vetsource’s 2026 veterinary industry white paper says data from more than 6,000 U.S. practices show continued declines in patient visits and slower revenue growth, and VHMA’s January 2026 KPI commentary described practices as doing more within each visit while seeing fewer total visits overall. Trade reporting on the same data has highlighted lower wellness utilization, softer product purchases, and greater pressure on active-patient counts. (vetsource.com)
Macroeconomic conditions help explain why. Pet-industry reporting citing Cascadia Capital’s Winter 2025/2026 overview found a cooling labor market, muted consumer confidence, and continued inflation pressure on household budgets through late 2025. In that analysis, veterinary services inflation was up 7.8% year over year in September 2025, well above the 3.0% national CPI increase. AAHA, meanwhile, has warned that negative growth in client visit numbers could persist through at least mid-2026, with pet parents delaying routine appointments and elective procedures while scrutinizing every bill more closely. (petfoodindustry.com)
Industry commentary is converging around the same conclusion: practices can’t count on fee increases alone. AAHA’s recent market guidance argues that economic headwinds are real and that practices should resist purely defensive cuts that weaken client visibility or retention. Earlier AAHA reporting on affordability also noted the emotional and ethical strain veterinary teams face when financial limits force compromises in care, and highlighted financing tools such as CareCredit, Scratchpay, and charitable support as part of a broader affordability toolkit. That makes Hayes’ EquiManagement discussion timely, because affordability is no longer just a client-service topic; it’s becoming a practice-stability issue. (aaha.org)
Why it matters: For veterinary professionals, especially practice leaders, the practical takeaway is that this is a margin-management and access-to-care story at the same time. If visits are falling while costs for labor, supplies, and services remain elevated, practices need sharper control over scheduling, preventive-care compliance, pricing discipline, and collections. They also need better ways to communicate value to pet parents who may still want care, but are increasingly forced to prioritize. In equine and companion animal settings alike, that can mean discussing estimates earlier, structuring phased care plans when appropriate, offering financing transparently, and watching KPIs such as transaction charges, active-patient counts, revisit intervals, and wellness adherence more closely than gross revenue alone. Those implications are supported by the available industry data; the inference is that operational discipline will matter more than simple price expansion in 2026. (aiv-vet.com)
What to watch: The next key question is whether visit volume stabilizes as 2026 progresses, or whether the gap between rising veterinary prices and client willingness to spend widens further. Watch for updated AVMA, Vetsource, and VHMA benchmarks on visit counts, revenue growth, and preventive-care utilization, as well as whether more practices expand financing and payment options for pet parents. If those indicators improve, practices may regain some footing; if not, affordability and retention will remain central business risks for the profession. (vetsource.com)