The Impact of Private Equity on Physician Practices: What You Need to Know
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A recent study published in JAMA Health highlights the increasing trend of private equity (PE) acquisitions in physician practices and the impact of PE exits on physician retention. The findings raise significant concerns about physician turnover and the consolidation of medical practices, with implications for patient care, physician autonomy, and healthcare costs.
According to the study, when a PE-owned physician practice is sold—typically within 3 to 7 years after acquisition—physicians are 16.5 percentage points more likely to leave the practice within two years compared to their peers in non-PE practices. Many of these departing physicians move to larger healthcare organizations, contributing to industry consolidation and potentially reducing the availability of independent practice options.
Physician departures following PE exits may stem from shifts in financial incentives, changes in practice management, and concerns about corporate interference in medical decision-making. For patients, this turnover disrupts continuity of care, while for physicians, it may result in reduced clinical autonomy and increased pressure to meet financial targets.
MSSNY has long recognized the risks associated with corporate investment in healthcare and remains committed to protecting physician decision-making and patient access to care. Our policy explicitly supports educating physicians about the risks of PE acquisitions and advocating safeguards against corporate interference in medical practice. Additionally, we continue to push for policies that ensure physician continuity and protect patient care in the event of contract transitions, bankruptcies, or other adverse business developments.
As the healthcare landscape evolves, it is crucial for physicians to stay informed about these trends and their potential impact on medical practice. MSSNY will continue working with the American Medical Association (AMA) and other stakeholders to support physicians navigating these challenges. If you are considering a PE partnership or experiencing challenges related to corporate ownership, MSSNY is here to provide guidance and advocacy to protect your professional interests and your patients’ well-being.
Sale of Private Equity–Owned Physician Practices and Physician Turnover (Berquist, MD, MPP; Klarnet, BA; Dafny, PhD).
