News & Updates

April 18, 2024

PAI-Avalere Report on Physician Employment Trends and Acquisitions of Medical Practices: 2019-2023

PAI and Avalere Health have engaged in a long-term research collaboration to study how consolidation trends are impacting physicians. This latest report adds two additional years’ data (2022 and 2023) to previous research and provides insights into: (1) the trend of acquisitions of physician practices by hospitals/health systems and other types of corporate entities (e.g., private equity firms, insurers); and (2) the dramatic shift of physicians from independent practice to employment.

Key Findings     

  • Continuing a decade-long trend away from private practice, nearly four of five physicians (77.6%) of physicians are now employees of hospitals/health systems and other corporate entities.
  • The marketplace race to acquire physician practices has resulted in nearly six of ten (58.5%) of physician practices owned by hospitals/health systems and other corporate entities.

These staggering facts show that hospital systems and other corporate entities continued to drive consolidation in healthcare by aggressively acquiring physicians practices, particularly in the period following the beginning of the COVID-19 pandemic.

Download the full report and key findings.