I had a similar issue a few months ago with Pilau. Though the vet said it was most likely just a cyst, there was the option of a biopsy......which would have been very expensive. Because the vet said it was more than likely not something sinister, I decided not to go for biopsy and see how he got on with anti-biotics. Very glad I made that decision.
It is not always sensible to just think 'money's no object'. I know if I was faced with a definate spend for Pilau, then I'd cough it up somehow. But a spend that may or may not be necessary and could possibly finish him off? Tough decision.
I think you made the right one binky. Quite aside from the cost, you don't want to be putting an elderly and frail cat under anaesthetic. The fact that cost was a consideration shouldn't make you feel guilty. This is the reality of living with animals. Sometimes you do have to make decisions based partly on the cost with pets. There are times when spending that money would simply not be sensible. I am sure had this occurred when your cat was younger, say 7 or 8, you mayhave reached a different conclusion. Though, even then.....I would always advise trying the antibiotic route first, before spending on a bunch of tests and risking the animal to the dangers of surgery.
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