The share of physicians in private practice has decreased from 60.1% in 2012 to 46.7% in 2022, with practice acquisition serving as one of the driving factors for this decline over the last decade.
Here are the top three reasons physicians are selling their practices to hospitals, according to recently released analysis of 10 years of data on physician practice arrangements conducted by the American Medical Association:
- The need to negotiate higher payment rates with payers: 79.5 percent of physicians reported this was either a "very important" or "important" reason why their practice was either sold or acquired by a hospital or health system.
- Managing payers’ regulatory and administrative requirements: 71.4 percent of physicians said this was a "very important" or "important" reason.
- Improving access to costly resources: 69 percent of physicians cited this as a "very important" or "important" reason.