KTFMC Meeting: Equine Veterinary Changes, Implications for Farm Managers

by Sara Gordon and Katie Petrunyak

LEXINGTON, KY-The Kentucky Thoroughbred Farm Managers Club (KTFMC) held its first meeting of the year on Tuesday at Keeneland. The event was conducted jointly with the Kentucky Association of Equine Practitioners (KAEP) and the over 200 in attendance represented both organizations. Members of the Godolphin Flying Start and Kentucky Equine Management Internship programs were also on hand.

Recent changes and trends in the equine veterinary field were a focal point of the evening, along with topics including equine litigation and liability, navigating equine veterinary practice changes and the equine veterinarian shortage.

KTFMC President Gerry Duffy said their board brought up the issue of the equine veterinary shortage as a potential topic for their monthly meeting and from there, they partnered with the KAEP knowing that the subject would be relevant to both organizations.

“We know that the vet-farm manager relationship is so important and we have been hearing statistics about how they're struggling to get equine practitioners and of the ones they get, there's a high degree of partition,” Duffy explained. “We thought it would be a good topic to discuss at the meeting and when we got talking to the KAEP, they were having a meeting focused on equine veterinary litigation and liability so we thought, why not bring the two together?”

A 'Q and A' session on the Horseracing Integrity and Safety Act (HISA) was also conducted with HISA's Director of Equine Safety and Welfare Dr. Jennifer Durenberger and HISA Representative Marc Guilfoil, bringing forth a host of questions on the new responsibilities that those overseeing horses outside of the racetrack would take on if and when HISA comes into authority.

Evolving Landscape of Equine Insurance Coverage

Equine attorney Mike Casey of Casey Bailey & Maines, PLLC, based in Lexington, was the first speaker to the podium, leading a discussion on the evolving landscape of equine insurance coverage and the particulars of filing a claim under those policies.

Casey emphasized the importance of the relationship between vets and farm managers, particularly when it comes to how the vets document interactions with their patients and handle subsequent care when called out to the farms. This is all information that is not only necessary for those directly connected to the horse, but also required when it comes to instances of filing a claim, such as equine mortality, with an insurance agency.

Common issues that arise involve how often the vet visits the patient, varying whether the visits are routine or for a specific health issue, which correlates with the problematic pressure to prescribe medication without examining the patient first.

“It is critically important to make sure when you're administering medications that you have that temporal visit with the horse,” said Casey.

He also touched on the growing issue of using medication on a horse that it was not originally prescribed to.

“I probably see that more today, in the last two or three years, than the last 10 years before.”

All of these issues were weighed against what the insurance company would be looking for when handling a claim, which always leads back to the importance of maintaining precise, updated documentation. Medical records must include enough detail that anyone checking on the horse should be able to know exactly what their health status is, what treatments they have received in the past and how things should be handled for that particular patient going forward.

“Farm managers need to call the vet and make sure they see the horse the next day. It'll hopefully avoid a catastrophic outcome and it is in compliance with regulations that we know will have heightened scrutiny as we go to HISA, or as KAEP redrafts regulations,” said Casey.

When dealing with mortality insurance claims, farm managers should take the time to read through the entire policy in order to understand what is expected of them when dealing with the insurance company. In that same vein, all communication with the designated representative of the insurance company should also be documented, to avoid any issues when filing a claim down the road.

Casey explained why understanding any negating factors, such as instances of failure to provide improper care, is crucial. His example touched on use of a medication on a horse that it was not prescribed to, which could fall under the realm of an “intentional act” of improper care. In most cases, “proper care” is defined after the fact.

“We want to be able to connect the prescription to the horse, to the vet's visit, to prevent application of the unauthorized medication claim,” he said.

Communication and proper documentation are the key points when it comes to vets and farm managers abiding by regulations, maintaining the proper care for the horses in their charge, and ensuring that in the case of any insurance claims filed, everything is presented properly to guarantee a seamless process.

According to Casey, there is no such thing as too much communication, using the example of emailing the insurance agency a summary of the vet's visit for annual vaccinations to prove his point. Farm managers must also understand that a vet isn't going to report directly to the insurance agency in the case of a claim, so they must maintain their own day-to-day records as well.

“We've got to establish a dialogue for this industry, [when it comes to] what is reasonable, proper and the routine method of doing business. It is important that insurers play a role in this,” said Casey. “It's too easy to use the sins of others in the industry to say, 'That's why we have a heightened medication claim.'”

As he concluded his presentation, Casey reiterated the importance of ensuring all treatment decisions and medications are being administered based on the physical examination of that horse.

 

KTFMC President Gerry Duffy with former president John Williams | KTFMC

Equine Practitioners Discuss Vet Shortage

While most meeting attendees were aware of the equine veterinary shortage, the statistics shared by Hagyard's Dr. Luke Fallon were staggering.

Fallon said that according to a recent survey conducted by the American Association of Equine Practitioners, by 2030, equine medicine will need over 5,000 veterinarians to meet the growth in demand. Currently there are approximately 3,650 practicing equine veterinarians in America.

Additionally, of the 3,300 veterinary graduates each year from U.S. schools, only 1.3% will enter the equine profession directly. While 4.5% will enter an internship program, 50% will leave the equine profession within five years.

“If you do the math, the shortage of equine veterinarians is already here,” Fallon said. “Why are equine vets leaving the profession? Burnout is one of the key factors. It is a demanding job with long hours and low starting salaries compared to small animal jobs, which often include a signing bonus as high as $200,000 for new graduates.”

Fallon explained that many young students enter veterinary school with the dream of becoming an equine practitioner, but turn to small animal medicine because it is a more logical step financially. He said that equine veterinarians usually start at between a third and half of the initial salary of a small animal veterinarian.

Fellow Hagyard veterinarian Rhonda Rathgeber joined the conversation to discuss a few of the new initiatives Hagyard is working on to encourage veterinary students to consider a career in the equine industry.

Hagyard has enhanced their recruitment efforts by hosting student weekends to show how their facility operates and share details about their externship program. Although the initiative has been hurt in recent years due to the pandemic, it has led to increased numbers in their externship program.

“We are up to 150 externs this season, so if your veterinarian has an extern or a student with them, please be patient,” Rathgeber advised. “We've done a lot of work to get them to come and see what it's really like.”

Hagyard has also increased their outreach through college visits. Last year, they visited a third of the veterinary colleges in the country. Additional recruitment efforts include a podcast, their participation in the annual Opportunities in Equine Practice Seminar hosted by Rood & Riddle Equine Hospital and also hosting their own undergraduate seminars for pre-vet students.

Jim Heird, PhD, rounded out the session to discuss one promising step toward overcoming the shortage. Heird is a member of the advisory council for Lincoln Memorial University's Equine Veterinary Education Program (EVEP), which provides an accelerated, six-and-a-half year path to a Doctor of Veterinary Medicine degree. Students go through the undergraduate program at LMU and as long as they maintain a 3.35 GPA, they are automatically accepted into the school's veterinary program.

The EVEP places an emphasis on their students developing hands-on horsemanship skills. Students will work on-farm summer internships during their undergraduate years and then will intern at clinics during their summers in the veterinary program.

Heird said that LMU produces more equine veterinarians than any other school in the country.

“When I think about my career, I don't know of anything that I've done that has as much impact on the future of this industry than this program could have,” he said. “That's why I'm so passionate about it.”

 

HISA's Director of Equine Safety and Welfare Dr. Jennifer Durenberger and HISA Representative Marc Guilfoil

Concerns for Consignors and Managers Brought to Light During HISA Q and A

The evening concluded with a focus on HISA, where attendees were given the opportunity to ask Durenberger and Guilfoil questions. Pertinent to those in attendance, many questions focused on the regulations for those dealing with horses covered under HISA, outside of the track, such as consignors at the sales or farm managers handling lay-ups at the farm.

Though HISA has already released handbooks for racetracks, racetrack maintenance, regulatory veterinarians, attending veterinarians and trainers, Durenberger did say that handbooks for groups such as farm managers, consignors and off-track vets were in the works.

In the meantime, she emphasized that it would be the responsible party's job to update any records related to a “covered horse” in the HISA online portal, as those records would not be required until the horse returned to the racetrack. In those cases, the responsible party would more than likely be the trainer.

Further concern was expressed for clarifying who the responsible party would be, depending on different situations when the horse is not at the track, and specifying the time requirements for submitting any updates to a horse's medical record. Durenberger assured those asking these questions that further details would be provided, in hopes of clearing up any misunderstanding.

 

For almost 100 years, the KTFMC has helped build community and camaraderie among farm managers while also working to find solutions for challenges that these managers face. Their current officers are President Gerry Duffy (Godolphin), Vice President Adrian Wallace (Coolmore), Treasurer Charles Hynes (Coolmore), Secretary Molly Harris (Shawhan Place) and Sergeant-At-Arms B.G. “Scooter” Hughes (Hughes Racing Stable). The club boasts over 500 members and hosts a number of annual charitable fundraisers including a golf scramble, a trail ride, a 5k run, and more. For more information on the KTFMC or to apply for membership, visit www.ktfmc.org or email info@ktfmc.org

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Eads Named KHRC Interim Executive Director

Jamie Eads has been named interim executive director of the Kentucky Horse Racing Commission by Governor Andy Beshear. Eads joined the KHRC in 2008 as the director of the Division of Incentives and Development. In 2016, she was appointed deputy director of the KHRC where she worked closely with the executive director and commission members in the overall operations of the agency.

“Jamie Eads is a great asset to the Kentucky Horse Racing Commission and has been a part of the evolution of horse racing in Kentucky,” said Beshear. “Jamie has the right combination of background and vision to lead Kentucky horse racing.”

Eads succeeds Marc Guilfoil who led the KHRC as executive director for six years.

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HISA Appoints Guilfoil to Oversee State Commission Relations

Marc Guilfoil, Executive Director of the Kentucky Horseracing Commission, has joined the Horseracing Integrity and Safety Authority (HISA) as Director of State Racing Commission Relations.

In the role, Guilfoil will direct outreach to and collaboration with state racing commissions on the implementation of HISA's Racetrack Safety and Anti-Doping and Medication Control Programs.

Tom DiPasquale, a HISA consultant, has been performing in the role on an interim basis and will continue to do so until July 15 to facilitate a smooth transition.

“Marc is a respected leader in the racing industry with years of state racing commission experience, and I trust that his expertise, relationships and professionalism will serve HISA well as we continue to work closely with state racing commissions to implement the new federal law,” said HISA CEO Lisa Lazarus. “I also want to thank Tom DiPasquale for his incredible work over the last several months as HISA has prepared to go into full effect this summer; he has been an invaluable contributor to HISA's implementation plan.”

“I want to thank the Governor and the State of Kentucky for the opportunity to serve the state as Executive Director. It's been both an honor and a privilege. I am looking forward to helping HISA achieve national uniform safety and integrity standards,” said Guilfoil.

Guilfoil began his work at the Kentucky Horse Racing Commission in 1988 and was promoted to executive director in 2016. He had previously served as the commission's director of racing and as deputy executive director of the commission.

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Familiar Arguments at Hearing for Baffert’s Stay of Suspension

The hearing on the motion for a stay to be granted for Bob Baffert's 90-day suspension by the Kentucky Horse Racing Commission (KHRC) was held on Thursday, Mar. 16 in the Franklin County (Ky) Circuit Court, with both sides repeating what are now familiar arguments about the initial ruling.

Thursday's court hearing was held after the original hearing scheduled on Mar. 2 was postponed when it became apparent that the KHRC would be holding a special meeting two days later to consider and rule on Baffert's request for a stay. This meeting was held on the appointed day and the KHRC voted 10-0 to deny stays of penalties while Baffert and owner Amr Zedan appeal the drug positive rulings related to the disqualification of Medina Spirit in the 2021 GI Kentucky Derby. These penalties include a 90-day suspension and $7,500 fine for Baffert while Zedan was ordered to forfeit Medina Spirit's purse winnings.

After the KHRC board denied Baffert's appeal for a stay on Mar. 4, the matter was taken to the circuit court before judge Thomas Wingate, who did not give an indication of his final decision after Thursday's hearing but said a ruling would be determined by Monday, Mar. 21.

Baffert attorney Craig Robertson was the trainer's sole representative present in court on Thursday while fellow Baffert attorney Clark Brewster appeared later in the hearing over Zoom.

As Robertson began his opening statement, Wingate asked for clarification on the matter of the penalties that came out of Arkansas in May of 2020 when Gamine (Into Mischief) and Charlatan (Speightstown) tested positive for lidocaine. Both horses were initially disqualified and Baffert was handed a fine and a 15-day suspension, but the disqualifications and suspension were later overturned.

“What the facts showed were numerous issues with the original findings of the stewards,” Robertson explained, citing how one sample that supposedly came from Charlatan was incorrectly labeled as a sample from a gelding. “In the end, they set aside the stewards' ruling with no disqualification.”

In Robertson's opening statement, he discussed how the KHRC was attempting to paint Baffert as having a problematic drug violation history, but said that Baffert's violation record stacks up to virtually every trainer in America.

“Their narrative is false,” he said. “By any objective measure, Mr. Baffert has been a tremendous ambassador for horse racing.”

He continued in pointing out the significance of a 90 day suspension because the California Horse Racing Board (CHRB) has confirmed that they too will honor the suspension set forth by the KHRC. Trainers suspended 60 days or more are banned from all CHRB premises and must forfeit their stalls.

“It would essentially end his Hall of Fame career,” Robertson said. “It's preposterous that we would end a Hall of Fame career over a topical ointment. What's even more preposterous is that we end his career before he can appear in court.”

The KHRC is scheduled for a full hearing regarding Baffert's appeal on April 18th. Up to four days of proceedings are scheduled if needed.

“I'm not asking for you to rule today that Mr. Baffert wins on the merits of this case. That day will come. What I'm asking is that he not be forced to serve his penalty now until his case is heard. If he's forced to serve his penalty now, he can't get those days back if he subsequently wins the appeal. It's not uncommon for stewards' rulings to get reversed by the KHRC itself or by this court,” Robertson said, citing the 2015 Graham Motion case where Motion appealed a suspension and fine handed down by the KHRC. Both were later thrown out by Wingate.

Robertson's arguments placed heavy emphasis on differentiating betamethasone valerate–found in the topical ointment Otomax–and the intra-articular injection of betamethasone acetate. Test results obtained from the New York Equine Drug Testing and Research Laboratory confirmed the finding of betamethasone valerate in Medina Spirit's system.

Robertson noted that while KHRC regulations state that a 14-day stand-down period is required for the intra-articular administration of the corticosteroid as betamethasone acetate, he said that no such violation took place because there was no intra-articular injection of betamethasone as a corticosteroid. In addition, he said that KHRC regulations state that the presence of a detectable concentration of more than one corticosteroid will constitute a violation.

“They only prohibit injections of betamethasone acetate,” he said. “There is no prohibition or regulation of the topical ointment betamethasone valerate and no limit of detection standard unless there is more than one corticosteroid. The KHRC could have specified limit of detection for one corticosteroid or they could have specified for betamethasone topically. They didn't. They are asking for you to read things into the rules that simply don't exist.”

Jennifer Wolsing, the general counsel for the KHRC, began her statement by saying, “There has been a lot of talk about the unprecedented nature of the KHRC's action to deny the stay. It is our position and I would like to submit that Mr. Baffert's conduct is also unprecedented and justifies the stay denial that we have before us today.”

Wolsing went on to explain how Baffert's accrued penalties are “literally off the charts,” how the suspension is justifiable because he presents an elevated risk of re-offense and also how the suspension serves to protect racing participants, the horses, integrity in racing and the public's confidence in racing.

In response to Robertson's comments about the overturned rulings in Arkansas, Wolsing pointed out that Baffert still received fines for the positives from Charlatan and Gamine because the commission found that Baffert was “the absolute insurer of the condition of the horse.” Because Baffert was still fined for both horses, the KHRC considers these occurrence as two separate violations.

Judge Wingate asked Wolsing about the difference in the administration of betamethasone topically and intra-articularly.

“[Regulations] explicitly state, 'Except as expressly permitted in [in 810 KAR Chapter 9], while participating in a race, it is a violation if a horse carries in its body any medication that is foreign to the horse.'”

She went on to state that betamethasone is not expressly permitted, referencing the KHRC's Drug Classification Schedule where betamethasone is listed as a Class C medication. She explained that because the KHRC did not make a distinction as to the form of betamethasone, it therefore indicates that any form of betamethasone is considered a Class C violation. She also notes that a warning is listed on the withdrawal guidelines that states medication administered outside of the guidelines may lead to a positive test result.

“The source of betamethasone is pharmacologically irrelevant to its impact on the horse,” she said. “When betamethasone valerate is absorbed, valerate is cleaved off and you have pure betamethasone in a horse's system.”

When Wingate asked Wolsing about Robertson's earlier point about the KHRC attempting to put Baffert out of business, Wolsing responded by saying that it was not her understanding that the 90-day suspension would put Baffert out of business. She explained that he could transfer his horses to another trainer for that period and said that the trainer could apply for the same stall space and Baffert's employees would not necessarily need to be laid off.

Wolsing concluded, “At the end of the day, we have to look at who is more likely to prevail. Our regulations are very clear. Betamethasone, in whatever form, is completely prohibited on race day…We have unprecedented behavior and it is totally allowable for the KHRC to deny a stay. If it's allowable, this presents the appropriate case to deny a stay.”

Robertson did rebuttal several points from Wolsing's statement.

Addressing her statements regarding the medication specifically, he said that she is relying on a “catch-all” term that betamethasone is a foreign substance, but in looking at the regulations for betamethasone, regulations are clear about the intra-articular injection of betamethasone acetate but nothing is said about topical administration.

“There's nothing in there that says betamethasone valerate is prohibited,” he said. “They could have stated that, but they didn't. They can't go around punishing this man-and putting him out of business and ending his Hall of Fame career– for something they didn't put in their regulations.”

Addressing the fact that Baffert did pay fines for the positives of Charlatan and Gamine at Oaklawn Park, Robertson said that the stewards did not overrule the fines because of political pressure and that while Baffert could have appealed the fines and won, he did not because he considered the overturned disqualification and suspension a victory.

In regards to Wolsing's points about Baffert transferring his horses to another trainer if he is forced to serve the suspension, Robertson pointed out that such a transfer would have to be agreed upon by the other trainer and the horses' owners, and the other trainer would also have to agree to take on Baffert's employees.

“It's not nearly as simple as Ms. Wolsing tried to paint it,” he noted.

KHRC executive director Marc Guilfoil was called to witness to talk about denying Baffert's request to a stay.

When Wolsing asked about his decision, he responded that he put a lot of thought into it and cited the KHRC's mission statement of maintaining integrity and honesty in horse racing. He said that he reflected on Baffert's announcement in November of 2020 where he made several statements including that he would hire Dr. Michael Hore of Hagyard Equine Medical Institute to “add an additional layer of protection to ensure the well-being of horses in my care and rule compliance.” Guilfoil said that to his knowledge, Baffert failed to fulfill the promises made in the public statement.

“Trainer 101 is to look at a medication you're giving and see if there are any prohibited substances,” Guilfoil said, then referencing how Baffert's four medical violations within a one-year time frame averaged to one per 88 starts.

When Wolsing asked Guilfoil how Baffert's case compares to others he has worked on in the past, Guilfoil said, “The word unprecedented has been thrown around quite a bit and I do agree that it is unprecedented, and the two [violations] in Kentucky were two premiere races in the state of Kentucky.”

When Robertson had the opportunity to question Guilfoil, he asked Guilfoil if the executive director could conclude, without question, that he knew Baffert had not attempted to fulfill the promises made in the public statement, to which Guilfoil ultimately said he could not.

Attorney Clark Brewster, who represents both Zedan Racing Stable and Baffert, also gave a statement via Zoom. He too emphasized the distinction of betamethasone administered as a topical or an intra-articular injection and pointed out that prior to Medina Spirit's drug positive, Baffert had only had one medication positive in 29 years of racing in Kentucky. He ended by stating that he was confident that Baffert would ultimately be exonerated.

In order for Wingate to grant Baffert a stay, the judge must conclude that Baffert's stable would suffer irreparable harm without a stay and must also determine that the trainer's appeal could reasonably lead to an overturned ruling at the April 18th hearing.

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