Physician Practice Independence Declines Sharply
Click to Enlarge
A new AMA study reveals a continued decline in private physician practice ownership. In 2024, only 42.2% of U.S. physicians worked in wholly physician-owned practices, down from 60% in 2012. The majority now work for hospital systems, health networks, or private equity firms, driven by rising administrative burdens, inadequate reimbursement, and the need for greater negotiating power with payers. Most notably, just 35.4% of physicians now hold an ownership stake in their practice.
This shift is reshaping the physician workforce, with small, independent practices giving way to larger, multi-specialty groups. While specialties like ophthalmology and orthopedic surgery still maintain high levels of private ownership, the trend toward consolidation is accelerating.
Physician Practice Characteristics in 2024: Private Practices Account for Less (Kane, PhD, AMA, 5/29).
