Private Equity-Backed Consolidation Divides Physicians

As more physicians leave their private practice behind, tension is growing over their choice of potential partners — particularly private equity, which is increasingly drawing federal and state scrutiny. Fewer physicians — only 46.7% in 2022 compared with 60.1% in 2012 — work in practices wholly owned by doctors as they struggle to manage reimbursement cuts, regulation and rising expenses. As a result, more physicians are joining health systems, private equity-backed management services organizations and insurers. That trend has spurred research, lobbying groups, regulation and legislation on physician employment models.

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