A new year in veterinary medicine: Key trends to watch and why they matter

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Now that 2025 is here, it’s the perfect time to step back and look at how the biggest stories of last year are likely to shape the months ahead. If you care about where veterinary medicine is heading – and how it might impact you – now’s the time to pay attention. So, let’s get into it.

Access to care advancements

In September 2024, Congresswomen Deborah Ross and Claudia Tenney introduced the People and Animals Well-being (PAW) Act, a bipartisan bill designed to make veterinary care more affordable.¹ The proposed legislation would allow pet owners to use up to $1000 from Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to cover veterinary expenses or purchase pet insurance. For service animals supporting veterans and individuals with disabilities, the bill offers unlimited coverage for veterinary costs.

Practices should keep an eye on the progress of the PAW Act as it can provide new opportunities to position and market their services. By leveraging tax-advantaged funds, clinics could promote subscriptions, wellness plans, and preventive care tailored to help clients maximize their benefits.

Veterinary professional associates

In late 2024, Colorado became the first state to officially adopt a veterinary midlevel practitioner role, the Veterinary Professional Associate (VPA). VPAs, equipped with a master’s degree, will be authorized to perform tasks like diagnosing, developing treatment plans, and performing surgeries under the supervision of licensed veterinarians. Will Colorado’s move serve as a precedent for broader adoption? According to Kevin O'Neill, vice president of state affairs for the American Society for the Prevention of Cruelty to Animals, Florida, where a VPA bill passed unanimously in the House but faltered in the Senate, might resume its efforts in 2025.² Wayne Jensen, DVM, PhD, MBA, a professor in the Department of Clinical Sciences, who has been spearheading the VPA initiative at Colorado State University, also said that he has been contacted by 3 other states interested in exploring this program. ³

The introduction of the VPA position has drawn mixed reactions within the veterinary community: supporters see it as a way to address workforce shortages and improve access to care, while critics question the adequacy of training and its potential impact on the roles of existing veterinary professionals. To learn more, check out webinar and statements⁴ from Gail C. Golab, DVM, PhD, MANZCVS, DACAW, associate executive vice president and chief veterinary officer at the AVMA, and Ashli Selke, CVT, RVT, immediate past president of The National Association of Veterinary Technicians in America, and member of the CVPA Legislative Committee, who offer valuable insights into this ongoing debate.⁴

Private equity money is back

The private equity slowdown in veterinary medicine is officially over. Last year brought a surge of deal activity,⁵ from recapitalizations to strategic acquisitions, signaling that big investors are back in the game. What does this mean for 2025? More consolidation, but with a twist: groups are no longer just buying practices – they’re buying other groups.

Investors aren’t just throwing money at anything, though. The focus is shifting toward high-growth segments like de novo hospitals, emergency care, and mobile services. If you're looking to grow, just follow the money – whether that’s expanding into untapped markets, adding new service lines, or aligning with what investors are funding.

The insurance market consolidation

The pet insurance market is also undergoing rapid consolidation, with JAB Holding Company snatching up dozens of players in its quest to build a global insurance platform.⁶ Through its subsidiaries, Independence Pet Holdings and Pinnacle Pet Group, JAB now owns over 20 pet insurance brands operating in more than 10 countries. As of 2023, the combined equity value of these businesses was approximately $7 billion.⁷

Centralizing a large portion of pet insurance under one entity – especially one that also owns major veterinary networks like National Veterinary Associates and Ethos Veterinary Health – could give JAB the power to influence pricing, shape policies on treatments or diagnostic tools, and drive referrals within its network. This might create challenges for independent hospitals trying to compete. However, with pet insurance adoption still low and the industry’s struggles with affordability and trust – amplified by issues like rising premiums and policy nonrenewals – these potential impacts are unlikely to materialize immediately. That said, practices should carefully evaluate their relationships with pet insurance providers and diversify partnerships to balance risk and opportunity. The bigger challenge for the industry remains finding ways to make pet insurance work for both providers and clients.

Chewy’s expansion

In 2024, ⁸ Chewy, Inc made waves by launching Chewy Vet Care, a brand of pet health practices offering routine appointments, urgent care, and surgery. The first clinic opened in Florida, followed by Colorado, Georgia, and Texas, with 8 locations launched in total.

Chewy Vet Care is part of its ongoing drive to attract new customers, and, in combination with a proprietary app, “deepen their commitment to the Chewy ecosystem.”⁵ Chewy is banking on modern technology to deliver a personalized and memorable in-practice and post-visit experience – something that today’s pet owners not only value but increasingly expect. The takeaway for other practices? If you’re not using tools like online booking, digital communication channels, apps, or AI, you’re falling behind – and fast.

Don’t miss a beat in 2025!

Ryan Leech, BBA is a growth consultant and speaker specializing in strategic guidance for veterinary businesses. He has held key roles in business development and partnerships at organizations, including Digitail, Galaxy Vets, and Veterinary Integration Solutions. Leech also hosts The Bird Bath, a weekly podcast covering pet health trends, industry news, and insights.

References

1. Crossley K. Federal bill aims to help make veterinary care more affordable for pet owners. dvm360. September 10, 2024. Accessed January 9, 2025. https://www.dvm360.com/view/federal-bill-aims-to-help-make-veterinary-care-more-affordable-for-pet-owners
2. Wogan L. VIN News Service. Colorado voters send veterinary profession in new direction. November 7, 2024. Accessed January 9, 2025. https://news.vin.com/default.aspx?pid=210&Id=12364064&f5=1
3. The Bird Bath live webinar. Midlevel Practitioner Position: Will Other States Follow and What It Means for You. December 3, 2024. Accessed January 9, 2025. https://youtu.be/hC3f-IHGHLc.
4. The Bird Bath. Midlevel Practitioner Webinar Follow-Up. December 12, 2024. Accessed January 9, 2025. https://thebirdbathvet.substack.com/p/the-bird-bath-midlevel-practitioner
5. Leech R. What a Year It Was. Today’s Veterinary Business. December 1, 2024. Accessed January 9, 2025. https://todaysveterinarybusiness.com/2024-veterinary-industry-1224/
6. JAB Diversifies Beyond Consumer Goods and Services. News release. JAB. May 13, 2024. Accessed January 9, 2025. https://www.businesswire.com/news/home/20240513451120/en/JAB-Diversifies-Beyond-Consumer-Goods-and-Services
7. JAB letter to Senators Warren and Blumenthal. December 16, 2024. Accessed January 9, 2025. https://www.jabholco.com/documents/6/JABLetterPet-Care.pdf
8. Chewy Sees Promise in Vet Clinics and Payoff From App Investments. PYMNTS. August 28, 2024. Accessed January 9, 2025. https://www.pymnts.com/earnings/2024/chewy-sees-promise-vet-clinics-payoff-from-app-investments/