Making veterinary services more economically sustainable and accessible
The veterinary sector bears significant economic costs in maintaining animal health and welfare for the overall community, particularly through provision of “in kind” labour. This is enhanced during natural disasters or in the case of unowned animals, when veterinarians both forego their usual income and bear the cost of treating injured animals. A natural result of prolonged inadequate remuneration for highly skilled work is labour market shortages. These shortages in the veterinary sector are typically experienced across all cohorts rurally, regionally, in metropolitan areas and amongst early career vets. Low rates of pay compared to other professions such as medicine, engineering, dentistry, significant educational debt and difficult working conditions combine to make the industry an unattractive one financially to remain in long-term. There is a significant attrition rate in the profession during the first ten years of practice as veterinarians seek alternative employment in often unrelated sectors – creating sub-optimal outcomes for the economy and society.
Funding for payment to veterinarians who provide assistance in disaster situations
Veterinarians face the dual problems of being price takers in the market for veterinary services to owned animals, while also having legal responsibility to provide care for unowned animals (like wildlife and stray animals) with no prospect of compensation. The free service that veterinarians are compelled to provide becomes a net cost when labour and materials are taken into consideration. This ‘conscription of labour’ is not mirrored anywhere else in the private sector.
There is an urgent need for Government to develop a system of payment to veterinarians to provide for the treatment of unowned animals which is currently being provided at the considerable personal and financial cost of veterinarians.
Recommendation 2.1: Development of a mechanism to allow consistent secure payment for veterinary services delivered in natural disasters and to unowned animals, including wildlife.
Pet Insurance
The availability of pet insurance to cover some of the costs of animal treatments is a relatively recent phenomenon in Australia. At this stage the market is still maturing with uptake being low and many of the products not yet meeting customer expectations. This results in relatively high premiums and mixed consumer confidence in the market. Despite the current state of the market, pet insurance provides a potential solution to one of the biggest problems confronting veterinary practices – the affordability of 21st century veterinary care to animals. Concerns over cost is a major cause of dispute between veterinary practices and clients. Financial constraints around treatment options are one of the causes of wellness and ethical issues among veterinarians. Pet insurance can provide a financial safety net for owners to mitigate against unexpected veterinary expenses. However, it needs to have wider take-up to improve coverage and reduce the cost of the insurance.
Australia has addressed human health insurance by providing universal coverage under Medicare, which is supplemented by private health insurance. With almost 70% of households having pets – a similar figure to the proportion of households with families – consideration should be given to a mechanism to provide affordable and reliable coverage for all animals to share the financial burden of maintaining animal health beyond a small section of the community and the veterinary profession. A means-tested subsidy for pet insurance similar to the system for private medical insurance, would be beneficial in providing this coverage for all animals.
Recommendation 2.2: A mechanism to provide subsidisation of pet insurance.