Is time running out for private practice physicians? As the number of physicians practicing independently shrinks, the industry is seeing the effects of this trend in 2024.
Here are five updates on the state of the private practice workforce:
1. Around 108,700 physicians left private practice for employment between 2019 and 2021, according to a report from Avalere.
2. A report from VMG Health found that more than 75% of the physician workforce is either employed by health systems, private equity groups or industry mega-groups such as Optum or CVS — leaving only around 25% of physicians as independent practitioners.
3. An American Hospital Association survey found that 94% of physicians surveyed reported it has become too difficult to operate a practice in recent years, making it a driving force behind physician practice acquisition.
4. A Syntellis survey found that revenue at physician practices at the beginning of this year increased by 6.1% year over year — but expenses also increased — by 8%.
5. Nearly one-fourth of physicians may be considering leaving their roles. A study conducted by researchers at Brigham and Women's Hospital in Boston, University of Wisconsin School of Nursing in Madison, Hennepin Healthcare in Minneapolis and the American Medical Association found that about 24.3% of physicians plan to quit their roles in the next two years, with an additional 47.3% reporting feeling burned out.