National PetCare sinks teeth into vet market

FORT COLLINS — Walking into the plush and spotless environment of National PetCare Centers, it’s difficult to imagine the facility bustling with the bushy tails of its customers.

A receptionist siphons the endless phone calls through the labyrinth of office space, while people clad in three-piece suits scatter to answer the rings. The only dichotomy to this top-notch business motif is the swishing tail of the inhouse cat, Loki, which can be seen stalking around the office corners.

The effect is comfortable, posh, professional and sterile — as if the facility was wrapped in pretty paper and taped down with military corners. Top-notch business coupled with country coziness.

It’s this combination of appearance and quality that is vital to National PetCare Centers, a network of consolidated veterinary clinics based in Fort Collins.

Gary Burge, 48, president and CEO of the company, said veterinary medicine is an intangible product. The quality of vet service may be outstanding, but if the facility is decrepit, it’s a customer turnoff. Animal hospitals affiliated with National PetCare Centers aim for superiority in both areas.

“Pet owners view their pets as their children. Their animals are no longer ‘just a pet,”‘ Burge said. “They also pay for their pets directly out of their pockets. So vet clinics now have more-demanding clients who choose a clinic based largely on their moods. Clients judge quality by how you look, and how nice the (facility) is.”

One look at Loki snuggled up in Burge’s arms, and customers know their pets belong in this office of lavish chairs and trendy landscapes. Usually, the pet owners feel just as at home. Burge said National PetCare is about maintaining long-term relationships with pets and their owners.

As one of the largest networks of veterinary hospitals in the country — with more than 20 facilities and 550 employees nationwide — National PetCare is the only one primarily owned and managed by veterinarians. And, the company just celebrated its first birthday

Last May, the owners of 26 practices in seven states collaborated to form a veterinary partnership. Those founders include Burge, Bob Cartin, Ross Clark, Marv Johnson, Rich Johnson, Bruce Thomes and Dick Thomes. Bruce Thomes is the only non-vet in the group. He serves as the chief financial officer.

Collectively, the founders felt that modern-day veterinary practices were steering away from the traditional one-doctor, one-office approach. The idea of calling the local vet to fix a late-night family pet problem is no longer reality. Pet owners may still need 24-hour service from time to time, but they now visit an around-the-clock clinic instead.

The American Animal Hospital Association, an organization that regulates standards among 2,600 vet hospitals nationwide, maintains a similar philosophy.

“Some people still believe veterinarian medicine to be an almost vocational trade, something learned on a farm,” stated information provided by the association. “The reality is that a veterinarian is a highly educated person, skilled in preventing, diagnosing and treating animal health problems.”

By consolidating resources and services, veterinary clinics can offer more for less. This also puts less strain on the veterinarians and their personal lives. Those who don’t want to work late nights don’t have to.

Burge maintains that National PetCare Centers soon will be the “premier provider of veterinary medicine.” In 10 years, Burge said, the network of National PetCare clinics will offer 24-hour critical care, ancillary services such as boarding and grooming, and outpatient medical and surgical care.

“To do this, we must consider the four stakeholders in our business: the pet, the client, the hospital team and the owners and investors,” Burge said.

To make this idea work, National PetCare acquires hospitals that maintain similar philosophies and have the capacity to create exceptional facilities. The company then focuses on “very high-end training, far above schooling” and management skills.

“We’re a limited partnership. The emphasis is on teams,” Burge said. “More people means more group buying power. No one has to do anything as a solo unit.”

The partnership of National PetCare resulted from an equity exchange of each of the seven founders’ veterinary practice assets. Burge fronted an additional $1.5 million in cash.

National PetCare will just break even after its first year in business. The company will continue acquiring veterinary practices in the Northwest, Texas, Oklahoma and southern California in the years to come.

As to whether the company will consider a public stock offering, Burge said “probably, eventually,” but nothing is planned for the immediate future. Right now, he said, “We want to perform to our own standards.”

To Burge, this means making the company’s clients feel less like a number and more like an individual.