April 17, 2024- PAI and Avalere Health have engaged in a long-term research collaboration to study how consolidation trends are impacting physicians. Key findings include that nearly four of five physicians (77.6%) of physicians are now employees of hospitals/health systems and other corporate entities, according to the PAI-Avalere report. Also, the marketplace race to acquire physician practices has resulted in nearly six of ten (58.5%) of physician practices being owned by hospitals/health systems and other corporate entities.
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.
These facts exemplify that hospital systems have continued to drive consolidation in healthcare post COVID-19 pandemic.