Veterinary Prices Surge 55-60% in Ten Years
Veterinary services have climbed 55-60% over the past decade, far outpacing general inflation and human medical care. The rise, driven largely by labor costs, has sparked client frustration and industry debate.
Veterinary services have risen 55-60% over the past decade, outpacing the 35% rise in the consumer price index and the 30-40% rise in human medical care. The spike has been especially pronounced since the pandemic, with veterinary costs climbing roughly 40-45% versus a 25% rise in overall CPI and a 15-20% rise in human medical care.
Inflation in Veterinary Services
The numbers speak for themselves. Over the last ten years, veterinary services have increased by about 55-60%, compared with a 35% increase in the consumer price index and a 30-40% increase in human medical care services. Since the pandemic, the rise in veterinary costs has been roughly 40-45%, while overall CPI has climbed about 25% and human medical care has risen only 15-20%.
| Category | Approximate increase over the past 10 years |
|---|---|
| Veterinary services | 55-60% |
| All goods and services (CPI) | 35% |
| Human medical care services | 30-40% |
| Category | Approximate increase since 2019 |
|---|---|
| Veterinary services | 40-45% |
| Overall CPI | 25% |
| Human medical care | 15-20% |
For a deeper dive into the numbers, see our stats page.
Salary Compression Among Veterinarians
The American Veterinary Medical Association reports that the earnings gap between new graduates and seasoned veterinarians has narrowed dramatically. In 2001, the average veterinarian earned 93% more than a new graduate; today the gap is only about 19%. This flattening of the career earnings curve has contributed to mid-career attrition and burnout.
Labor-Related Cost Drivers
Veterinary practices face a range of labor-related expenses:
1. Shortages - Even before the pandemic, veterinarians, vet techs, and CSRs were in short supply. The pandemic accelerated retirements and staff departures, forcing practices to offer large signing bonuses, overtime, and relief veterinarians. 2. Turnover - Over three decades, the author has seen turnover rates that put a new employee in the office every month or two. High turnover drives scheduling chaos, extensive training costs, and higher pay demands. The situation mirrors the fluidity seen in a sports squad, as shown in our squad data. 3. Regulation - Compliance with OSHA, controlled-substance handling, cybersecurity, medical-records management, radiation safety, hazardous-waste disposal, and employment law adds to payroll costs. 4. Standards - Modern veterinary care now often requires double to triple the team that once handled the same patient load. Advanced lab work, monitoring, drug protocols, and imaging improve outcomes but also increase labor.
Client Perceptions and Industry Response
Clients routinely question the high prices, especially since veterinary inflation is not mirrored in the broader economy. While some veterinarians point to rising education costs, supplier prices, or corporatization, the underlying driver is the escalating cost of labor across the profession. Third-party suppliers and practice consolidators also demand a larger share of the revenue, further squeezing margins.
Patty Khuly, VMD, MBA, runs a small animal practice in Miami, Fla., and is available at drpattykhuly.com. Columnist’s opinions do not necessarily reflect those of Veterinary Practice News.
