FIVP warns of remedy dangers in CMA response
New prescription rules could see independent practices forced to raise prices, FIVP says.
The Federation of Independent Veterinary Practices (FIVP) has shared its fears for the veterinary sector, as it publishes its full response to the Competition and Markets Authority (CMA).
The not-for-profit organisation, which represents independent practices across the UK, believes that the CMA’s provisional remedy package will adversely impact those in independent practice.
FIVP publicly released its response to the CMA provisional remedies on Friday, 14 November. It has also shared the results of its 'Impact Assessment' survey, upon which its response was based.
The response particularly raises concerns about the CMA's approach to prescriptions and medicine sales. The CMA has proposed that veterinary professionals direct their clients to online pharmacies where they can acquire their pet's medicines 'more cheaply'.
FIVP has stated that, for many independent practices, the sales of medicines enables them to subsidise the costs of providing veterinary treatment, as well as other overhead fees and charges.
The organisation predicts that, were the remedy to go ahead, its members will be writing more prescriptions and reducing the prices of their medicines. Without this income, it believes members will be forced to increase the costs clients pay for their pet's veterinary care.
If independent practices can not cover these fees in other areas, the response warns that animal welfare and practice staffing could be at risk.
FIVP comments that, while the CMA investigation was launched in response to fears of market consolidation, its actions in regards to pharmacies could lead to further consolidation. It says that the CMA's provisional remedies 'will not serve its purpose of balancing competition, nor giving clients greater choice, nor lower costs'.
Rita Dingwall, chair of FIVP, said: “Although we are in full support of the CMA’s investigation, we fear that some of these remedies may inadvertently impact independent veterinary practices – and the veterinary sector as a whole.
“We hope that the CMA Inquiry Group will carefully consider our response, and we look forward to speaking with them at our forthcoming hearing.”
FIVP's response can be read here. You can also read its Impact Assessment results here.
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