In recent years, the veterinary industry has been at a crossroads, grappling with the increasing influence of corporatization and private equity. This shift has seen nearly half of all companion animal practice revenue in the U.S. falling under corporate control, a trend that continues to grow. However, amidst this corporate wave, a beacon of hope shines through the concept of worker cooperatives, offering a promising alternative that champions local ownership and prioritizes animal care over profit.
Understanding Worker Cooperatives
Unlike the traditional business models that dominate the U.S. landscape, worker cooperatives operate on a principle of workplace democracy. This model isn’t just a theoretical alternative; it’s a proven structure with a presence around the globe, contributing significantly to local economies and competing internationally. Despite their success, worker cooperatives remain relatively rare in the U.S., with only 612 identified in a 2021 study, though they have experienced a notable growth rate of 30 percent over two years.
Worker cooperatives operate under a simple yet powerful idea: they are enterprises owned and democratically controlled by their members—the employees. This model not only empowers workers but also aligns business practices with the needs and welfare of the community and the workforce, rather than prioritizing shareholder profits.
The Veterinary Industry: A Prime Candidate for Cooperatives
The veterinary sector, with its dedicated professionals who often view their work as a calling rather than just a job, is particularly suited for the cooperative model. Veterinarians and veterinary staff are deeply committed to the welfare of animals and the support of pet owners, making them ideal candidates to run and manage their practices.
Lexie Law, LVT, of Urban Animal in Seattle, highlights the benefits of this model, noting that cooperatives prioritize employee satisfaction and community welfare, ensuring that the practice can thrive while staying true to its values. “We are guided by more than just profit,” Law explains. “Our commitment is to animal care and community service, which aligns perfectly with the ethos of a worker cooperative.”
Challenges Posed by Private Equity
The rise of private equity in pet care has not been without controversy. Critics argue that when profit maximization becomes the primary goal, the quality of care can suffer, and the well-being of both pets and veterinary professionals may be compromised. This concern is echoed in a recent Freakonomics podcast episode, where economist Eileen Applebaum points out the legal and ethical dilemmas posed by private equity’s dominance in healthcare fields traditionally protected from corporate practice.
Why Choose Worker Cooperatives Now?
The timing for embracing worker cooperatives in veterinary medicine has never been more critical. The industry faces significant challenges, including professional burnout, high suicide rates among veterinarians, and the pervasive influence of private equity. Worker cooperatives offer a sustainable solution that can address these issues by putting control and ownership back in the hands of those who are directly involved in the day-to-day care of animals.
Moreover, recent legislative developments, such as those in Washington state, have begun to provide more support for companies looking to transition to employee ownership, reflecting a growing recognition of the benefits that this model can bring.
A Vision for the Future
As the veterinary industry continues to evolve, the worker cooperative model stands out as a beacon of sustainable and ethical business practice. By empowering veterinary professionals to lead their practices, these cooperatives not only enhance job satisfaction and workplace morale but also ensure that the care provided is of the highest quality, driven by a commitment to the well-being of pets and their owners rather than by the imperatives of profit.
For those in the veterinary field, transitioning to a worker cooperative could be the key to reclaiming their profession, providing compassionate care, and building resilient, community-focused practices that can weather the challenges of an ever-changing economic landscape.
