Requires veterinary clinics to file notice and documentation to the attorney general to determine if certain transactions would be against the public interest for veterinary care access prior to completing such transactions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9042
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the agriculture and markets law, in relation to requir-
ing veterinary clinics to file notice and documentation to the attorney
general before completing certain transactions
PURPOSE:
This bill will increase transparency and oversight of the veterinary
clinic market by requiring notice to the Office of the Attorney General
regarding material changes in ownership, operations, or financial struc-
ture.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new article 26-D to the Agriculture and Markets Law
Section 2 establishes the effective date
JUSTIFICATION:
Over the past decade, major private equity firms have bought up many
independent veterinary practices nationwide. An April 2024 article in
the Atlantic reported that an estimated 25 to 30 percent of practices in
the United States are now under the corporate umbrella. In response to
such buyouts, pet owners have expressed decreased satisfaction' with
care, increased costs, and closures of essential emergency services.
The same report details both the financial and emotional impact of these
predatory purchasing practices. As of March 2024, veterinary service
costs have surged 9.6% year over year, compared to just 3.5% for other
goods and services. In August of 2023, Thrive Pet HealthCare, a private
equity-backed company that owns more than 380 veterinary hospitals
nationwide, closed the only 24-hour clinic serving Rochester's metro
area, citing a shortage of veterinarians. This decision took away a
crucial avenue to much-needed pet care, with zero public input.
In 2017, private equity firms spent $2.39 billion to purchase practices,
and by 2020 that number grew to $14.27 billion. This corporate consol-
idation makes it burdensome for pet owners to find the smaller, inde-
pendent practices they have grown accustomed to and which can offer more
personalized care and lower costs than corporate practices.
This legislation would require entities to file a notice with the Office
of the Attorney General before purchasing clinics. The Attorney General
would then determine if the purchase is against the public interest
before it can be finalized. This ensures that the transaction keeps
veterinary care accessible, affordable, and focused on the health and
welfare of pets, rather than maximizing corporate profits.
LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
90 days.
