Blogs

VHMA Insiders’ Insight Commentary
October 2025
Brittany Yost, CVPM, CVBL, CCFP
Director, Customer Implementation and Engagement, Vetsource

This quarter's VHMA Insiders' Insight data tells a consistent story, aligning with what we've seen throughout the year. Patient visits and revenue remained variable through the summer before climbing sharply in September to close the quarter on a high note. After a summer slowdown, practices closed September on a high note with the strongest month of patient visit growth in the past year. August marked the low point, with patient visits down -4.2% for VHMA Members and -5.2% for Non-Members year-over-year.  Last month, however, visits rebounded to a +3.5% change, marking the first meaningful uptick in months. Revenue followed a similar pattern, rising +5.2% in July, dipping -1.5% in August, and then climbing to +7.3% in September.

While these late-quarter gains are encouraging, they also highlight the volatility practices continue to face. Month-to-month revenue swings between negative and positive growth indicate that the industry is still seeking stability. Many teams are feeling the effects of client hesitation and rising costs. The strong September close serves as a reminder that recovery is possible, and it requires continued focus on client engagement and helping pet owners manage the cost of care. One powerful way to do that is by embracing a tool many practices still overlook: pet insurance.

How Pet Insurance Can Strengthen Practices and Support Clients

In an environment of unsteady revenue growth and declining visits, educating clients about pet insurance can be a powerful way to strengthen your practice's financial health. While practices don't earn revenue directly from selling insurance, insured clients consistently spend significantly more. According to AAHA, pet owners spend 92% more per dog and 76% more per cat annually when the pet is insured. Moreover, they are far more likely to approve higher-quality care, such as advanced diagnostics and surgical treatments. This drives up the average transaction value and allows your team to provide the best medicine.

Beyond financial gains, insurance supports better patient outcomes and client satisfaction. Owners are more likely to follow recommendations, schedule follow-ups, and pursue treatment for minor concerns, leading to earlier detection and faster intervention. Coverage also reduces financial stress, giving clients peace of mind and helping veterinary teams avoid the frustration of not being able to provide care.

Additional benefits to practices include:

• Higher acceptance of emergency and specialty care - Clients with coverage are more willing to proceed with urgent or referral treatments.
• Increased use of preventive and elective services - Wellness add-ons encourage routine care like dental cleanings and wellness exams.
• Fewer payment challenges - Insurance reimbursement or direct-pay systems reduce financial strain and ensure timely payment.

The Untapped Opportunity in Pet Insurance

Despite these clear advantages, pet insurance remains dramatically underutilized. Fewer than 4% of pets in the U.S. are insured. This underwhelming number highlights a massive opportunity for the industry. Awareness is one of the most significant barriers, as 24% of surveyed pet owners stated they didn't have insurance simply because they knew little about it.  For practices, this lack of awareness and low penetration rate represents a chance to:

• Capture untapped revenue - With the vast majority of pets uninsured, there's a significant opportunity to grow your practice through expanded services and treatments.
• Drive compliance and care - Informed clients are more willing to pursue treatment plans, leading to better patient outcomes and higher spending.
• Educate and differentiate - Position your hospital as a trusted advisor by actively teaching clients about insurance and offering a higher level of service.

The Value of Pet Insurance for Pet Owners

While veterinary practices benefit from pet insurance in many ways, its most important value is for pet owners themselves. Insurance helps clients manage the cost of care, reduces stress associated with unexpected illnesses or accidents, and empowers them to make decisions based on what's best for their pets, rather than what they can afford. By providing financial security and flexibility, pet insurance strengthens the bond between practices and their clients as they're better able to support improved overall care.  

Additional benefits to clients include: 

• Peace of mind and financial security - Knowing that unexpected accidents or illnesses, like a dog attack, a torn cruciate, or chronic conditions like diabetes, can be covered provides significant peace of mind.  This security helps clients manage potentially large veterinary expenses.
• Budgeting for routine and unexpected costs - While pet insurance primarily covers unexpected accidents and illnesses (it generally doesn't cover pre-existing conditions or routine preventive care), some companies offer wellness plan add-ons.  These function like savings or budgeting tools, allowing owners to pay a monthly amount and access funds for routine care, such as vaccines, heartworm prevention, or special diets, throughout the policy year.
• Flexibility in provider choice - Unlike human health insurance, pet insurance typically reimburses the owner directly, allowing them the flexibility to take their pet to any licensed veterinarian or specialist they choose, rather than being restricted to a network.

Steps Practices Can Take to Maximize Insurance Benefits

Maximizing the benefits of pet insurance starts with proactive client education. With dozens of insurance providers in North America, navigating options can be overwhelming for pet owners. There are a few helpful steps practices can take to get started:

• Designate a pet insurance specialist and train staff - Have a designated team member guide clients through plan options while ensuring the rest of the staff can confidently answer common questions.
• Emphasize early enrollment and address concerns - Clearly communicate waiting periods, coverage exclusions, and details about premiums and deductibles to help clients understand the benefits of proactive care.
• Provide accessible resources - Offer printed guides, email materials, and neutral online tools like PetInsuranceReview.com or Pawlicy Advisor so clients can compare providers and make confident choices.

By embracing pet insurance as part of your practice strategy, you create a win-win for both your clients and your team. Clients gain peace of mind, financial flexibility, and the ability to make care decisions without compromise, while practices benefit from higher revenue, improved compliance, and stronger client relationships. Proactively educating pet owners and integrating insurance into your services positions your practice as a trusted partner in pet health, enabling both pets and their owners to thrive.

Would you like to compare your practice's performance head-to-head with other VHMA member practices and the national average in one convenient KPI dashboard?  VHMA members can receive this report for free!  Not a VHMA member?  No fear, you can still sign up for this dashboard for only $41/month.  Learn more here.

References
Bast, Jaime. “How Pet Insurance Affects Your Veterinary Practice.” Zoetis PetCare Blog, Zoetis, https://www.zoetisus.com/petcare/blog/how-pet-insurance-affects-your-veterinary-practice/. 

Devitt, Liz, DVM. “Does Your Practice Need a Pet Insurance Specialist?” Trends Magazine, American Animal Hospital Association, 25 Apr. 2025, www.aaha.org/trends-magazine/publications/does-your-practice-need-a-pet-insurance-specialist/. 

Perez, Ashley. “Pet Insurance Overview.” Workplace presentation, 21 Aug. 2025.

Smith, Kelly. "Got It Covered?" Trends, vol. 39, no. 12, Dec. 2024, American Animal Hospital Association, https://www.aaha.org/trends-magazine/december-2024/got-it-covered/