Price freezes, incentive ban and comparison site among CMA remedy options

A comparison website, a medicine price freeze and a ban on practices that limit clinical freedoms are among the ideas being considered by regulators investigating the veterinary sector.

A fresh consultation process has begun after the Competition and Markets Authority (CMA) today (1 May) published a new working paper outlining potential remedies.

The 162-page document has stressed that the investigation remains ongoing, and the inquiry group insisted it had taken “a balanced approach” to its ideas.

The group added: “The purpose of this working paper is to consult with vet businesses, veterinary professionals and other interested parties on the likely impact of the remedies we are considering.”

Six ’emerging issues’

The document sets out what it describes as six “emerging issues” in the sector, including a lack of clear information for pet owners, high medicine costs and limited out-of-hours competition.

It argued that a comparison platform would “enable consumers to obtain the key information they need to compare services and prices from a single trusted and independent source”, on which practices could also be required to separately publish price and service information.

On medicines, the inquiry group said its “strong preference” was to help consumers to obtain the best possible prices within existing market structures.

But it also suggested a price freeze could be either temporary or permanent, with periodic reviews in the latter case, while a ban on prescription charges similar to that imposed by the former Competition Commission is another option under consideration.

Specific measures

Meanwhile, the suggestion that specific measures may be needed to protect practitioners’ clinical freedoms comes only weeks after the RCVS urged professionals to use its confidential reporting line to raise concerns following allegations broadcast in the BBC’s File on 4 Investigates.

The inquiry group said: “We are concerned that the design of some business practices, including practice management systems, key performance indicators, financial incentives, goals or other performance tools may limit or constrain choices offered to pet owners.”

It also suggested the college itself would have “an important role to play” in that area going forward.

Other emerging issues highlighted in the paper include owners potentially overpaying for cremations, where price controls and transparency measures are among the possible remedies under consideration, and a lack of choice of first opinion practice in some geographical areas.

However, no remedies are being proposed in the latter area because of the CMA’s existing powers to scrutinise acquisition deals.

Regulatory framework

But another area where reform is being sought is in the sector’s regulatory framework, which the paper suggested is “outdated and does not have enough focus on consumers”.

The group said it was considering “making recommendations to regulators and government on changes in the regulatory regime and what might be included in new legislation for the veterinary sector, in particular around how to regulate vet businesses, support vets to provide relevant information to pet owners and ensure effective systems for complaints and consumer redress”.

The establishment of a veterinary ombudsman was also among the specific ideas suggested, while the paper noted that groups including the BVA, RCVS and VSC are currently engaged in discussions about reforming the existing Veterinary Surgeons Act.

It added: “We hope that Defra will take into account any recommendations in respect of potential reforms that we make at the conclusion of our investigation.”

Consultations on the new working paper will remain open until 5pm on 27 May. Submissions should be emailed to [email protected]