Veterinary Practice Partners (VPP) Company Profile

Background

Veterinary Practice Partners (VPP), established in 2011 and headquartered in King of Prussia, Pennsylvania, is a veterinary management group that co-owns and operates general practice veterinary hospitals across the United States. VPP's mission is to empower veterinarians by providing operational support, allowing them to focus on delivering high-quality patient care. The company's vision emphasizes maintaining veterinary medicine in the hands of veterinarians through a co-ownership model that fosters clinical autonomy and preserves the unique identity of each practice.

Key Strategic Focus

VPP's strategic focus centers on its co-ownership model, where veterinarians retain significant equity in their practices. This approach ensures alignment between VPP and its doctor-partners, promoting shared success. The company specializes in providing comprehensive operational support, including marketing, finance, human resources, and technology, enabling veterinarians to concentrate on medical care. VPP targets the U.S. veterinary services market, aiming to expand its network of co-owned practices while preserving the individuality and clinical autonomy of each hospital.

Financials and Funding

In December 2021, VPP was acquired by Audax Private Equity, with the management team, led by CEO John McDonough, continuing to lead the company and retaining significant ownership. Specific financial details of the transaction were not disclosed. Prior to this, VPP experienced substantial growth, expanding from 90 co-owned veterinary hospitals in June 2022 to 140 locations across 27 states by November 2023.

Pipeline Development

VPP's growth strategy includes both organic expansion and strategic partnerships. The company has been actively expanding its presence through acquisitions, such as the addition of El Paseo Animal Hospital, and aims to double its size within the next two to three years. VPP's focus on co-ownership and operational support positions it to continue expanding its network of veterinary practices across the United States.

Technological Platform and Innovation

VPP leverages a suite of technological tools to enhance operational efficiency and support its partner practices. The company's tech stack includes:

Open Graph: For content management.

MySQL: Database management.

Dropbox and Google Drive: Digital asset and document management.

jQuery Mobile: Mobile framework.

Windows 10: Operating system.

Greenhouse: Recruitment marketing.

DX Delivery Service: Transportation and fleet management.

These technologies enable VPP to provide robust support to its partner practices, streamlining operations and facilitating growth.

Leadership Team

John McDonough: Chief Executive Officer. With over 25 years of experience as a healthcare executive in operational and financial roles, McDonough is a strong advocate for fostering alignment through co-ownership, creating better environments for serving patients and communities.

Dr. Doug Aspros: Chief Veterinary Officer & Medical Advisory Board Chair. Dr. Aspros leads VPP's Medical Advisory Board, contributing his extensive knowledge and experience to improve the co-ownership model for all existing practices.

Leadership Changes

In December 2021, VPP announced its acquisition by Audax Private Equity, with the existing management team, including CEO John McDonough, continuing to lead the company and retaining significant ownership.

Competitor Profile

Market Insights and Dynamics

The U.S. veterinary services market has experienced significant growth, driven by increased pet ownership and higher spending by pet owners. The industry remains fragmented, with over 30,000 hospitals, presenting opportunities for consolidation and efficiency improvements.

Competitor Analysis

Key competitors in the veterinary services sector include:

Southern Veterinary Partners and Mission Veterinary Partners: Merged to form a major U.S. veterinary care group valued at $8.6 billion, encompassing over 750 clinics and hospitals.

National Veterinary Associates (NVA): Owned by JAB, NVA is one of the largest veterinary consolidators.

PetVet Care Centers: Owned by KKR, PetVet operates numerous veterinary practices across the U.S.

IVC Evidensia: Backed by EQT, IVC Evidensia is a significant player in the European veterinary market.

These competitors focus on consolidating veterinary practices, often acquiring full ownership, which contrasts with VPP's co-ownership model that emphasizes maintaining clinical autonomy for veterinarians.

Strategic Collaborations and Partnerships

VPP's co-ownership model inherently involves strategic partnerships with veterinarians, enabling them to retain significant equity in their practices. This approach fosters alignment and shared success. Additionally, VPP has established a Medical Advisory Board comprising diverse doctor-partners who contribute their knowledge and experience to improve the co-ownership model for all existing practices.

Operational Insights

VPP's co-ownership model differentiates it from competitors by ensuring that veterinarians retain significant equity and clinical autonomy in their practices. This approach fosters alignment between VPP and its doctor-partners, promoting shared success. The company's focus on collaboration and respect for the individuality of each hospital allows for customized strategies that best fit each practice and the community it serves.

Strategic Opportunities and Future Directions

VPP aims to continue its rapid expansion, with a goal to double its size within the next two to three years. The company plans to achieve this through both organic growth and strategic partnerships, while maintaining its co-ownership model that empowers veterinarians and preserves the unique identity of each practice.