Just 30% of physicians in the United States were practicing independently at the start of 2021, the consequence of significant acquisition activity by hospitals and private equity groups. (Photo: Shutterstock)
The COVID-19 pandemic was especially hard for independent physician practices, driving many to rethink their payment models and accelerate the movement toward value-based care arrangements. Unfortunately, that coincided with an increase in acquisitions of independent practices by larger health care systems. This trend, many experts warn, results in increased prices and reduced competition.
Increased consolidation of physician practices has even caught the attention of the Federal Trade Commission, which this spring launched an investigation seeking claims data from major insurers to better understand how the trend is impacting the marketplace.
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Recently, the Physicians Advocacy Institute partnered with Avalere Health to break down the impact of the pandemic on independent physician practice acquisitions. According to their findings, just 30% of physicians in the United States were practicing independently at the start of 2021, the consequence of significant acquisition activity by hospitals and private equity groups.
"These trends are part of a greater shift towards consolidation within the health care marketplace, which has dramatically reshaped the practice landscape for physicians," the report's authors write. "Understanding the extent and impact of these trends is important for all health system stakeholders, given the implications on healthcare spending and in many cases, the continuity of the patient-physician relationship."
Take a look at the infographic below to see more key findings.
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Emily Payne
Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.
