White Paper

Empowering Independent Veterinary Practices in a Changing Landscape

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Executive Summary

Independent veterinary practices are facing intensifying financial and operational pressures. Rising labor costs, growing competition from online retailers, and more than 11 consecutive quarters of declining visits have eroded profitability and challenged long-term independence. Technological innovation, workflow optimization, collective buying groups, and personalized client communications are viable strategies to address today’s challenges, but ad hoc adoption of these strategies may fall short of driving greater clinical and financial outcomes for independent veterinary practices.

 

In response, Covetrus® developed VetSuite®—a practice improvement network for independent veterinary practices. Practices leveraging VetSuite report greater client loyalty, improved productivity, increased profit margins, and a competitive edge—all while staying independent.1, 2

 

This paper outlines the market forces shaping the industry, introduces the VetSuite network, and explores key benefits backed by data and insights from industry experts.

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Methodology

This white paper is based on proprietary data analysis conducted by Covetrus. Metrics reflect insights from VetSuite member practices, as well as internal performance benchmarks comparing VetSuite participants to non-members.

 

Key data points include:

 

  • Online pharmacy revenue and compliance metrics collected through vRxPro® via Covetrus Connect
  • Operational benchmarks such as profit margin improvements, time savings, and purchasing efficiencies tracked across member clinics
  • Client marketing engagement (e.g., click-through, conversion, and unsubscribe rates) from vRxPro’s behavioral marketing engine
  • Practice management and performance trends including product adoption, AI integration, and membership benefits

 

Insights are supplemented by commentary from Covetrus subject matter experts and validated through comparisons to national veterinary economic indicators, including the AVMA’s Veterinary Industry Tracker and 2023 Economic Report.5,6,7

Industry Challenge

Veterinary practices are in the midst of systemic change. Visits have dropped for 11 straight quarters, while rising labor costs have eroded margins by 7–12%—even as Doctors of Veterinary Medicine (DVMs) work longer hours.1 Meanwhile, $600 million in revenue has shifted from clinics to online and big-box retailers.3 Industry consolidation has failed to deliver promised improvements, leaving independents burdened by complexity and shrinking margins.

The VetSuite Opportunity

VetSuite is a veterinary network designed to drive practice savings and efficiency, in addition to increasing client loyalty in veterinary practices. It combines the Covetrus Platform, including e-commerce, practice management technology, pharmacy integration, client communications, behavioral marketing, and group purchasing benefits.

 

Independent practice margins are 58% lower than animal-health manufacturers.6 To help improve profits and manage expenses, VetSuite provides members with benefits that would be harder to achieve on their own. These benefits are based on how large corporate groups use their size to shape the market and reduce veterinary clinic costs—giving independent practices access to similar buying power and financial advantages.

 

For client engagement and retention, features commonly deployed in online retail—such as targeted pet owner communications and autoship functionality—were integrated into the online pharmacy component of VetSuite. These strategies are intended to promote adherence to treatment plans and strengthen client loyalty through more consistent and convenient access to products and services, powered by practice-branded behavioral marketing.

 

In terms of productivity, VetSuite includes options for integrated software systems, from veterinary practice management to client communications and payments. Driving the most benefit in terms of practice efficiency is the cloud-based veterinary management software, Pulse®, with embedded client communications, payments, and integration with Zoetis® Diagnostics. These technologies are designed to streamline workflows, facilitate clinical decision-making, and improve overall efficiency in practice operations.

Quotation Mark

As a result of VetSuite®, we can put that money back into our staff, back into our business, back into our products, and back into our animals.

Quotation Mark

Elizabeth Cichoki
Practice Manager, Hebron Veterinary Hospital

VetSuite Results

Improved Productivity

Productivity outcomes were measured using time-tracking and workflow data captured through Pulse. Reported metrics included average monthly administrative time saved per participating practice. Practices utilizing automated order syncing between vRxPro and Pulse reported an average savings of 50 hours per month.3 Time savings were attributed to reduced manual data entry, streamlined medical record documentation, and embedded veterinary clinic software integration.4

Greater Client Loyalty

Approximately 70% of pet parents currently source veterinary supplies through online platforms or large-scale retail channels, a preference that aligns with broader veterinary e-commerce trends and indicates a migration away from traditional in-clinic point-of-sale models.7 Notably, Millennials are 43% more likely to prefer online shopping and 28.4% less likely to prefer in-store shopping compared to Gen X.9 vRxPro addresses this shift in consumer behavior by facilitating online access to prescribed medications, including AutoShip delivery options for appropriate products when authorized by the veterinarian, to enhance loyalty and support ongoing care.
Client purchasing behavior was evaluated by analyzing data from vRxPro campaigns, including how often clients clicked on promotional content (click-through), how many took the next step such as ordering a prescription (conversion), and how many ultimately completed a purchase. Performance was evaluated across a sample of practices with fully configured e-commerce and behavioral targeting campaigns. Use of the vRxPro e-commerce solution increased online storefront utilization by 30%, on average.3 Year to date, 78% of veterinary practice clients have returned to make repeat purchases through vRxPro—including both those enrolled in AutoShip and those placing multiple individual orders.8

Enhanced Competitiveness & Revenue

With over $15 million in added member value across the network, VetSuite leverages collective buying power to reduce the cost of veterinary equipment and supplies, drive competitiveness, and improve veterinary clinic profitability.3 Profitability improvements were measured via comparative analysis between VetSuite and non-VetSuite member practices. Metrics included practice-level profit margin (%) and incremental revenue per DVM (USD). VetSuite practices demonstrated a 25% increase in profit margin compared to non-member practices. Member data shows incremental revenue growth of $25,000 per DVM.4

Enhanced Competitiveness & Revenue

With over $15 million in added member value across the network, VetSuite leverages collective buying power to reduce the cost of veterinary equipment and supplies, drive competitiveness, and improve veterinary clinic profitability.3 Profitability improvements were measured via comparative analysis between VetSuite and non-VetSuite member practices. Metrics included practice-level profit margin (%) and incremental revenue per DVM (USD). VetSuite practices demonstrated a 25% increase in profit margin compared to non-member practices. Member data shows incremental revenue growth of $25,000 per DVM.4

Further analysis examined the impact of vRxPro on revenue streams and client compliance. Practices with a full configuration of vRxPro observed an increase of over 75% in online prescription revenue and a 35% increase in preventatives sold over baseline.2, 4 Outcomes may vary. These improvements were linked to personalized, behavior-driven communications deployed automatically based on client history.

Conclusion

VetSuite now supports over 3,000 practices and nearly 6,500 DVMs across 49 states in the U.S. By offering unmatched operational, financial, and marketing tools in one connected offering, Covetrus is helping independent practices achieve their goals without giving up control. VetSuite offers strategies to grow independent vet practices, enabling practices to work smarter, grow stronger—and remain proudly independent.

By Sarah Jorgensen

Reviewed by Cathy Barnette, DVM

1 AVMA Veterinary Industry Tracker;
2 Covetrus Internal Study of 18M Pet Owners, 2022;
3 Covetrus Data Analysis, 2024;
4 Internal Case Study, 2024;
5 Interview with Marc Blanchette, Senior Director of Product Marketing, Covetrus, April 2025;
6 AVMA Report on the Economic State of the Veterinary Profession, 2023;
7 American Pet Products Association, August 2023;
8 Covetrus Internal Data, 2025;
9 Millennial Shopping Statistics, Capital One, April 2025.

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This is non-sponsored content. Outcomes may vary, and individual results may depend on practice configuration, client demographics, and product usage.