This week on Petworking, I sat down with Daryl Hatton, CEO of ConnectionPoint, to discuss some crucial and timely issues, related to the need for crowdfunding solutions in veterinary care. ConnectionPoint's Petfundr brand is specifically designed for pet-related projects and needs. It operates similarly to other crowdfunding platforms like Kickstarter or GoFundMe but is focused exclusively on pets and animals.
Considering the financial challenges many pet owners face, the concept of Petfundr as a specialized crowdfunding platform for pet-related needs is innovative and addresses a significant gap in pet care funding. Here are some key takeaways and reflections from the episode:
Financial Euthanasia and Veterinary Burnout: The issue of financial euthanasia not only affects pet owners but also takes a toll on veterinarians.
The Fed's 2022 Economic Well-Being of U.S. Households survey noted that approximately 37% of Americans would struggle to cover a $400 emergency expense without resorting to credit, borrowing from family, selling assets, or obtaining a loan. The unfortunate consequence of this situation is that many pets are euthanized for otherwise treatable conditions, because their owners did not have the necessary funds to pay for the treatment. This is referred to as "financial euthanasia," and spots.com estimates that approximately 500,000 animals fall victim to financial euthanasia each year.
By providing an alternative funding route, platforms like Petfundr can alleviate some of the emotional burdens on veterinarians and pet owners alike.
The Limitations of Pet Insurance: Pet insurance would be one solution to this problem, but according to the latest statistics from NAPHIA, the pet insurance market in the United States covers just under 5 million pets, which includes both dogs and cats. Approximately 80% of these insured pets are dogs, but with at least 65 million dogs in the U.S., the overall penetration rate of pet insurance is still relatively low at ~4%, meaning over 60 million dogs do not have pet insurance. Consequently, these pet parents might face financial challenges if their pet develops a health condition that requires expensive treatment. highlighting the importance of solutions like crowdfunding, angel funds, or more accessible insurance options to help manage veterinary costs. This situation underscores the need for greater awareness and possibly more affordable or comprehensive pet insurance options to help mitigate the financial burden of pet healthcare.
Other limitations with pet insurance as a remedy to the issues of families being unable to afford veterinary care and resorting to financial euthanasia are:
Pet insurance does not cover pre-existing conditions, meaning that pet parents with older dogs and cats don't have a means of ensuring that their pet will be covered for all possible conditions.
Pet insurance often operates on a reimbursement model, which can be problematic for pet owners who cannot afford to pay upfront for expensive treatments.
Angel Fund Concept: Daryl and I also discussed the idea of an "Angel Fund", where customers of a veterinary clinic contribute to a fund that helps pet owners who cannot afford emergency treatments. In the frantic moments surrounding a medical emergency, this fund would allow underfunded pet parents to make decisions about their pet's treatment purely based on the best medical course of action.
The California and New York Veterinary Medicine Associations are considering implementing statewide angel funds using Pet Funder's technology.
Enjoy the episode, and as you're reflecting on your blessings this Thanksgiving, and perhaps pondering what charities will be the recipients of your charity on Giving Tuesday, take a minute to think about the pets that are in a situation where their families cannot afford to fund their medical care. Giving families an opportunity to keep all members of their family healthy is a worthy cause to consider indeed.
