The cost of veterinary care

A response to public comments about “exorbitant vet bills”

A resource has been developed for AVA members to utilise for communicating a balanced insight and provide perspective around the cost of veterinary care.

Veterinary care is highly sophisticated and almost everything that can be done for humans can be done for animals. However, the major difference is that unlike human health care, veterinary care is not subsidised or supported by the government through Medicare, the Pharmaceutical Benefits Scheme (PBS) or the public hospital system.

There is a disconnect between the community’s understanding of the true cost of delivering human health care and its perceived cost, and this gives the perception that veterinary care is expensive by comparison.

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Cost of delivery of health care, whether that be to people or animals, is very high (including; capital investment and maintenance of equipment and building infrastructure, medicines and consumables, wages, admin support, insurances, compliance to regulations, keeping knowledge current). The government provides a huge amount of support to delivering human health care with only around 14% of Australia’s total human health care costs being paid for by the individual consumer, the rest being paid for in the majority by the Australian government (73%) and health insurance companies (7.2%). In contrast, the overwhelming majority of the cost of veterinary care is paid for by consumers of the service – that’s the animal owners, and if in the case of unowned animals and wildlife, then it’s often the veterinarians meeting the costs themselves. Also of note, private human health insurance is additionally heavily subsidised by government.

Why would veterinarians have to pay to provide veterinary care? There are several pieces of legislation that place public good obligations (eg treating wildlife and unowned animals) on to the veterinary profession with no method for the profession to recoup the costs. Where it is not appropriate for private funding, and not publicly funded, the cost of treatment (drugs, consumables, use of equipment etc) is shifted to veterinarians and their private businesses.

Why are vet fees increasing?  The vast majority of veterinary businesses are small to medium businesses, and like all businesses the costs of keeping the doors open have increased at a similar rate to general inflation. Because there is no government support, all the cost increases must be passed on to the consumer for the service to remain. This is in addition to the costs of providing unpaid public good and meeting legislative obligations.  So veterinary team members are doing it as tough as everyone else.

How can the animal owning community prepare? Animal ownership is a responsibility and with that comes the financial planning to manage an animal’s health care. This includes how unexpected veterinary care, such as illness or injury, might be managed. Some people put money away on a regular basis, other people use pet insurance so that they have a safety net. As the life of an animal is quite short compared to humans, animals reach old age and often develop chronic disease in a shorter period, so planning for this is also important.

Animal owners can make choices about the care their animal receives in the context of their circumstances – just because advanced veterinary care is available, doesn’t mean it must always be chosen.

On a daily basis, veterinarians provide contextualised care. This model of veterinary practice accounts for variations in a client’s capacity or capability to pursue veterinary care options. The concept of contextualised care allows the veterinary team to deliver the package of care that is appropriate for that “context”, which can often be under the backdrop of limited resources. In some instance this means difficult decisions may need to be made for the best welfare outcomes – of the human and the animal.

People who are experiencing vulnerabilities can be responsible for the care of an animal who provides invaluable benefits through the Human-Animal Bond. This group of people may face barriers to receiving appropriate veterinary services. In the human health sector, there are allied services that provide mechanisms for people to access human health care. In the veterinary profession, such mechanisms to support the human component of this bond are very limited, with the concept of veterinary social services being very new and evolving in Australia. The availability of services to the veterinary profession and their clients, such as those provided by veterinary social workers, is likely to reduce the barriers for this group of clients, however, resourcing for this human welfare support should not be borne by the private veterinary sector.

There is a required financial conversation that veterinary teams must have with animal owners. This has only become more difficult as the cost of veterinary care has increased with increased cost of living and with the minimal government financial support for veterinary public good services . Additionally, a client’s high emotional state, and sometimes unrealistic understanding of what is possible in the medical and financial context, can be challenging, exhausting, and often overwhelming for veterinarians and their teams. This situation is further compounded by the fear of public shaming through social or sensationalist media, causing significant mental anguish for veterinarians and their teams.

All of these factors contribute to the veterinary profession having poorer mental health when compared to the general population.  We recognise our profession has experienced its fair share of challenges, and we are addressing this with several initiatives leading the way towards a more mentally healthy and sustainable profession.  One of these is the AVA initiative: THRIVE, which represents a unified industry-led initiative that directly addresses the main challenges of life as a veterinary professional. The AVA are proud of this program and look forward to seeing it positively contribute to the sustainability and wellbeing of our profession.

The AVA welcomes opportunities to discuss our advocacy work and support for the veterinary profession.

Please contact publicvetaffairs@ava.com.au

 

A full downloadable copy of this article is available here
TALKING POINTS
  1. Government Support and Comparison with Human Health Care:
  • Emphasise the key difference between veterinary care and human health care – lack of government subsidies for veterinary services.
  • Highlight the substantial government support for human health care, with only a small portion being covered by individual consumers (14%).
  • Illustrate that veterinary care relies heavily on individual consumers (animal owners) to cover the majority of the costs.
  1. Legislative Obligations and Uncompensated Public Good:
  • Explain the public good obligations imposed by government legislation on veterinarians, including treating wildlife and unowned animals.
  • Highlight the lack of mechanisms for veterinarians to recoup costs associated with these public good obligations.
  1. Financial Challenges for Veterinary Businesses:
  • Describe the financial challenges faced by veterinary businesses, most of which are small to medium-sized enterprises.
  • Explain that as with any business, the costs of maintaining veterinary services have increased, necessitating fee increases.
  1. Preparation for Animal Owners:
  • Stress the importance of financial planning for animal healthcare as part of responsible animal ownership.
  • Encourage animal owners to consider options such as saving money regularly or using pet insurance as a safety net for unexpected veterinary costs.
  1. Contextualized Care and Difficult Decisions:
  • Explain the concept of contextualised care in veterinary practice, taking into account clients’ varying capacities and capabilities.
  • Acknowledge that difficult decisions may need to be made for the best welfare outcomes, considering both human and animal welfare.
  1. Human-Animal Bond and Barriers to Veterinary Services:
  • Highlight the invaluable benefits of the Human-Animal Bond and its significance for people experiencing vulnerabilities.
  • Address the limited mechanisms and resources available for accessing veterinary services, especially for vulnerable populations.
  • Introduce the concept of veterinary social services as a potential solution to reduce barriers and support the human component of the bond.
  1. Financial Conversations and Emotional Strain:
  • Discuss the challenging financial conversations that veterinary teams must have with animal owners, especially considering increased costs of living and minimal government financial support.
  • Recognise the emotional strain on veterinarians and their teams, exacerbated by clients’ high emotional states and sometimes unrealistic expectations.
  1. Mental Health Challenges in the Veterinary Profession:
  • Highlight the mental health challenges within the veterinary profession, citing factors such as financial pressures, challenging client interactions, and fear of public shaming through media.
  • Introduce the AVA initiative, THRIVE, as a comprehensive industry-led program addressing mental health challenges and promoting sustainability within the veterinary profession.
  1. AVA Advocacy and Support:
  1. VetVoice:

 

 

A helpful article is also available at VetVoice: Frequently asked questions about the cost of veterinary health care