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Veterinary

CMA proposes price caps on vet prescriptions

Investment bank Peel Hunt has said the CMA’s ‘bark is worse than its bite’ calling headlines around the proposals ‘clickbait’

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The Competition and Markets Authority (CMA) has proposed the introduction of price caps on prescriptions provided by vets stating that pet owners could be “paying twice as much for commonly prescribed medicines from vet practices than they could pay online”.

The watchdog believes that vets should have a prescription fee cap of £16 and should be required to tell customers about savings they could make by buying medicines online.

The CMA has also proposed that vet businesses should have to publish comprehensive price lists, make it easier for pet owners to access cheaper medicines online, give clear price information to owners arranging a cremation and give owners clear price information when they are choosing a treatment, with prices in writing for treatments over £500 and itemised bills.

Martin Coleman, chair of the inquiry group, said: “Pet owners are often left in the dark, not knowing whether their practice is independent or part of a chain or what a fair price looks like. They are sometimes committing to expensive treatment without understanding the price in advance. And they do not always feel confident asking for a prescription or buying medicine online – even when it could save them hundreds of pounds.

“Even where pet owners could access some of this information, it is difficult for them to compare prices and services – despite the fact that, in most of the country, there are several local practices they could choose between.”

The British Veterinary Association (BVA) said there were “positives” in the CMA’s provisional decision but that it “had concerns that some of the measures outlined will impact how services are delivered”.

Dr. Rob Williams, BVA president, added: “At first glance, there’s lots of positives in the CMA’s provisional decision that both vets and pet owners will welcome, including greater transparency of pricing and practice ownership; reform of the outdated regulatory framework; and support for our calls for regulation of vet businesses. The CMA also recognises that vets and vet teams are highly professional, and ‘work hard, act ethically, and put animal welfare first.

“However, we do have concerns that some of the measures outlined will impact how services are delivered. In particular, we need clarity on the proposed introduction of comprehensive price lists, because how vet care is delivered is varied and complex and unless the CMA gets this right, it could end up creating greater confusion for consumers, which in turn could have a negative impact on animal welfare.”

Investment bank Peel Hunt has said the CMA’s “bark is worse than its bite” calling headlines around the proposals “clickbait”. It believes that the changes are minor, with the CMA having “retreated from most of its initial findings” while dropping plans to regulate or limit pricing.

As a result the company has recommended investors buy stock in CVS group saying: “The CMA enquiry has lasted over two years and impacted vets and the level of investment. We believe it will be positive for the industry and CVS Group to be able to get back to running the business rather than being restrained by regulation and bureaucracy.”

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