What You Ought to Know:
– A brand new research by Avalere commissioned by the Physicians Advocacy Institute (PAI) paints a transparent image: the panorama of US medical apply possession is shifting dramatically. As of January 2024, a staggering 77.6% of US physicians are employed by hospitals, well being programs, or company entities.
– The development has been steadily growing over the previous 5 years, with over 44,000 practices acquired by these entities since 2019. Over 19,100 physicians left impartial practices to hitch hospitals, well being programs, or companies in 2022 and 2023 alone.
Research Background/Methodology
The research utilized the IQVIA OneKey database, which tracks doctor and apply location data, together with hospital/well being system possession, for each solo practices and enormous group practices. The info spans from January 2019 to January 2024.
Key findings of the report embody:
- Doctor Follow Consolidation: The development of medical apply consolidation continued by means of 2022 and 2023, with over 8,100 practices acquired in these two years alone.
- Shifting Possession: For the primary time, company possession (30.1%) surpassed hospital and well being system possession (28.4%). This contains possession by well being insurers, personal fairness companies, and enormous pharmacy chains.
- Impartial Practices Shrinking: Solely 41.5% of practices stay impartial, with over half (58.5%) now owned by non-physicians.
Issues and Implications
The PAI emphasizes considerations in regards to the influence of company possession on affected person care. Kelly Kenney, CEO of PAI, highlights the potential battle between a doctor’s moral accountability to affected person well being and an organization’s concentrate on shareholder earnings.
The COVID-19 Issue
The research identifies the COVID-19 pandemic as a significant accelerator of this development. Elevated doctor burnout and monetary pressure through the pandemic possible fueled the rise of apply acquisitions by non-physician entities.
“Company entities are assuming management of doctor practices and altering the face of medication in the US with little to no scrutiny from regulators,” mentioned Kelly Kenney, chief government officer of PAI. “Physicians have an moral accountability to their sufferers’ well being. Against this, company entities have a fiduciary accountability to their shareholders and are motivated to place earnings first. In some preparations, these pursuits can battle with offering the very best medical care to sufferers.”