Physician practice ownership on the decline

Physicians are less likely to work in private practice now than they were 10 years ago, according to a newly released analysis of physician practice agreements from the American Medical Association. 

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Factors including regulatory and administrative burdens and economic pressures have forced physicians to shift to hospital and health system settings. 

About 70 percent of surveyed physicians indicated gaining more favorable payment rates with payers and improving access to costly resources was an important or very important reason for selling their practice to a hospital or health system. 

Between 2012 and 2022, the number of physicians working in private practice fell from 60.1 to 46.7 percent, while the number of physicians working in hospitals as employees or direct contractors increased from 5.6 to 9.6 percent. 

The number of physicians working in practices at least partially owned by a hospital or health system rose to 31.3 percent from 23.4 percent. 

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