This charity is looking to a private partnership to grow the business

PDSA, the charity which runs animal hospitals for owners who can't afford vets' bills, has found a way to expand what it offers.

The interesting thing, though, is that it's doing it by bringing in the private sector to do its charity work for it.

Founded in 1917, PDSA is Britain's leading veterinary charity.

It carries out over a million consultations every year, the equivalent of 4,500 animals treated each working day.

But the cost of this service is high; in 2001 the bills reached �27m.

Contribution

That works out at an average �97.20 to treat an animal in one of the 45 PetAid hospitals.

This compares with an average contribution of �1.73 made voluntarily by pet owners.

You can see why it's been difficult for PDSA to expand.

PDSA's finances were being stretched, when they didn't need to be.

So how does the private sector input impact on the animals?

A good example is Suzy the cat, who's at the Northampton PDSA hospital with some tummy trouble.

Suzy is a bit of a pioneer, because although she was once one of the animals who was treated for free, the changes that have happened at PDSA mean she's become a private patient.

Under capacity

It used to be that pets like Suzy could only qualify to go to a PDSA hospital if their owners were on housing benefit or council tax benefit.

But now PDSA has gone into partnership with a private group of vets' practices.

"There are probably eight out of our 45 hospitals that are working well under capacity," says Marilyn Rydstrom, the PDSA's director-general.

"We have the option to close them and maybe farm out the work among private practices.

"But we took the decision that we didn't want to do that; we would still operate from the same premises and we wanted to keep the staff in jobs."

So the Northampton hospital is now run by a private sector company, VetSavers.

It welcomes any pets who can pay, but still cares for PDSA's charity customers for free.

Utilise

And, at a price, it offers them add-on services that wouldn't have been available before.

PDSA believes that by combining its charitable service and a value-for-money private practice under one roof, it can fully utilise the resources of some of the PetAid hospitals.

That maximises the veterinary care that can be provided for sick and injured animals.

PDSA chose VetSavers because it was the most suitable partner.

It was developed by its parent, the Best Friends Group, specifically to meet the different needs of lower income pet owners.

"Private clients can now use the facilities that were only for PDSA clients," explains Andrew Bennett of Best Friends Group.

"And PDSA clients are also able to tap into some of the things that they couldn't tap into before, such as vaccination, neutering, flea control, worming and buying dietary products.

"So, basically, it offers everybody a much better service all round."

The money-saving and new income streams this offers, both in Northampton and at the other nominated PetAid hospitals, are crucial if PDSA is to expand its PetAid services.

Potential conflict

It estimates making cost savings of around �2m a year following the scheme's roll-out .

But is there a potential conflict between the clients paying for private care and those depending on free care?

PDSA says needy animals won't be crowded out by paying patients.

And it hopes the could pay for more hospitals.

"Not only will we be paying the partner to provide the charitable service, but we'll be getting an income from that practice, from rental of the premises, rental of the equipment," says Marilyn.

"So the more private work the better for PDSA.

"What it'll do is it'll enable us to build and open at least three new hospitals."

The two organisations are piloting the scheme for six months. If it's successful they will enter into an agreement for five years.

It's a culture shock for the PDSA nurses and vets because their jobs have been transferred from a charity to a commercial practice.

But the aim is that more animals will be treated and each pound donated can be stretched a little further.

It's an expensive operation to run animal hospitals and employ the staff to keep them going.

In 2001 it cost �27m. PDSA isn't allowed to charge people for its services.

As a charity, PDSA raises money from the public to pay for the services that it provides.

Lots of charities have found it hard to meet their targets because there is so much competition for people's donations.

PDSA has come up with a scheme which helps it run its animal hospitals more effectively. It is being tried out at the new hospital in Northampton.

Just think...

A charity provides services to people who often would not be able to afford to pay the market price.

Make a list of charities that you know about. What do they do?

Why do you think people give money to charities.

A winning team

PDSA has always run its hospitals itself.

At the hospital in Northampton, it has set up a relationship with a private organisation, the Best Friends Group, which is in the business of providing veterinary care.

VetSavers is run by the Best Friends Group and provides a value-for-money service to help pet owners with low incomes.

The PDSA has firm rules about who can receive its free service.

You have to be getting benefits to help you pay your rent or council tax.

Just think...

PDSA and the Best Friend Group share some objectives. What are they?

In what way do their objectives differ?

Why do you think having similar objectives helps the organisations to work together?

A winning scheme

PDSA pays the Best Friends Group to provide free treatment for animals at the hospital.

The Best Friends Group pays PDSA a fee based on: