Surge in corporate ownership of medical practices raises concerns over physician autonomy, care quality

Editor's Note

Corporate entities are overtaking hospitals in terms of medical practice ownership, with corporate ownership at 30.1%, surpassing hospital ownership at 28.4% for the first time, Fierce Healthcare April 12 reports. This is alongside a “decadelong decline of independent physicians,” which saw a new high of 77.6% doctors employed by hospitals or other corporate entities in early 2024, up from 73.9% in early 2022, according to an April 2024 Physician Employment Trends report from the Physicians Advocacy Institute. In 2012, only 25.8% of physicians were similarly employed.

The report used data from IQVIA OneKey, which includes information on physician employment and practice ownership, revealing significant regional variations. For instance, the Midwest has higher percentages of hospital-employed physicians, while the South has more corporate-employed doctors. Meanwhile, the Northeast is seeing the fastest growth in physician practice acquisitions.

The shift is reportedly part of a broader move toward corporate control of medical practices, which has been lacking scrutiny by regulators. Policymakers are catching on, however, as concerns about anti-competitive behaviors behind corporate acquisitions of medical practices and their impact on healthcare quality are rising. There is a pressing call for physicians to maintain autonomy in their medical decisions to ensure patient care remains the top priority, the article noted.

Kelly Kenney, CEO of the Physicians Advocacy Institute, highlighted concerns that corporate interests, which prioritize shareholder profits, might conflict with the ethical responsibilities physicians have towards their patients. Still, it is undeniable these recent increases in corporate and hospital employment of physicians, driven by financial woes, are pushing many physicians toward more stable incomes provided by larger entities.