The consolidation of independent physician practices by hospitals, insurers, corporate entities and private equity firms shows no signs of slowing down.
In 2024, at least 47% of physicians were employed by or affiliated with hospital systems, up from 30% in 2012, according to a recent Government Accountability Office report. During the same period of time, the number of physicians working in private practice dropped from 60% to 42%.
However, there are signs that in some markets, the pendulum may be swinging back towards independence. Becker’s has reported on numerous companies and initiatives aiming to put practice ownership back in the hands of physicians through hybrid financial structures, joint ventures and coalitions that support independence, autonomy and growth.
Here are five physician-led initiatives trying to turn the tables on physician consolidation trends:
1. Pelto Health Partners was born from a collaboration among Durham, N.C.-based Emerge Ortho, Indianapolis-based OrthoIndy and Seattle-based Proliance Surgeons. The groups all share a commitment to supporting private practice sustainability. Pelto is a platform that aims to support small to midsized independent groups, particularly those struggling with nonclinical burdens, vendor negotiations and infrastructure investments.
2. The Charleston, S.C.-based Articularis Healthcare Group was founded 10 years ago from a single practice and has now grown into the nation’s largest independent rheumatology practice. It boasts a “portable” model designed to work across markets, keeping collaborating physicians independent while giving the, scale and resources to grow. The group structure includes multiple practices that are linked through shared contracting, technology and operational systems.
3. After witnessing the changes at a former employer when the organization was bought out by a larger company, Benjamin Stein, MD, an orthopedic surgeon, co-founded Capital Surgical Solutions. The company saw major success with its first two centers, particularly related to satisfaction and patient outcomes. The independence-focused model has also resulted in higher staff retention, a difficult feat in today’s market.
4. Philadelphia-based Atria Health is an independence-forward partnership model for cardiology practices. While Atria is backed by Cypress Ridge Partners, a private equity group, the company does not acquire practices, but rather invests in them to support long-term goals and growth. The company is led by Matt Eakins, MD, who has both clinical and investor experience. Atria recently partnered with Philadelphia-based AMS Cardiology, an independent cardiovascular practice of over 40 years, and launched an ASC through the joint venture.
5. Los-Angeles based Commons Clinic aims to cut through healthcare consolidation with a venture-backed, physician-owned model that shifts surgeries to ASCs and lowers costs through bundled pricing. Commons Clinic was founded in 2021 in an effort to give private practice physicians an alternative to hospital employment or private equity acquisitions, uniting them under a physician-led model focused on transparency, cost control and patient-centered care.
