Labor Costs Drive Rising Veterinary Prices
Veterinary services have outpaced general inflation, with labor shortages, turnover, regulation and higher standards pushing costs up. Salary compression and a shrinking earnings gap for experienced vets further strain the profession.
Veterinary prices have risen 55-60 percent over the past decade, far above the 35 percent rise in the consumer price index, according to the Bureau of Labor Statistics. The increase in veterinary services has been especially sharp since the pandemic, with a 40-45 percent rise versus a 25 percent rise in overall CPI and a 15-20 percent rise in human medical care.
Inflation Gap
The data show veterinary inflation outpaces other sectors:
| Category | Approximate increase over the past 10 years |
|---|---|
| Veterinary services | 55-60 percent |
| All goods and services (CPI) | 35 percent |
| Human medical care services | 30-40 percent |
The post-pandemic spike is even more pronounced:
| Category | Increase since 2019 |
|---|---|
| Veterinary services | 40-45 percent |
| Overall CPI | 25 percent |
| Human medical care | 15-20 percent |
These figures underscore that veterinary costs have risen faster than the broader economy.
Salary Compression
The American Veterinary Medical Association reports that the earnings gap between a new graduate and an experienced veterinarian has narrowed dramatically. In 2001 the average veterinarian earned 93 percent more than a new graduate; today the gap is only about 19 percent. This flattening of the career earnings curve contributes to mid-career attrition and burnout, as seasoned clinicians see little incentive to stay.
Labor Shortages and Turnover
Veterinary shortages have driven up labor costs. Before the pandemic, veterinarians, techs, CSRs and other support staff were already scarce. The pandemic accelerated retirements and resignations, forcing practices to spend more on hiring, signing bonuses, overtime and relief veterinarians. Practices now see a new employee every month or two, which inflates payroll and training expenses.
Regulation and Standards
Compliance costs have risen as well. OSHA, controlled-substance handling, cybersecurity, medical-records management, radiation safety, hazardous-waste disposal and employment law all add to labor-related expenses. In addition, client expectations for advanced diagnostics, sophisticated lab work, and comprehensive imaging now require teams that are double or triple the size of those that treated the same patient load a decade ago.
Veterinary Practice News notes that third-party suppliers and practice consolidators also demand larger shares of revenue, adding to the financial burden. The overall picture is that veterinary inflation is largely a story of labor becoming more expensive as care becomes more sophisticated.
Patty Khuly, VMD, MBA, runs a small animal practice in Miami, Fla., and is available at drpattykhuly.com. Her observations echo the broader trends highlighted by the AVMA and the Bureau of Labor Statistics.
For more detailed data on veterinary economics, see our stats page. To understand how staffing changes affect practice operations, review the fixtures and squad sections.
