70% of U.S. physicians are employed by hospital systems or other corporate entities as of 2021
PAI-Avalere Health Report on Trends in Physician Employment and Acquisitions of Medical Practices in 2019-2020 (June 2021)
Key Findings
National Physician Employment Trends
48,400 additional physicians left independent practice and became employees of hospitals or other corporate entities, and 22,700 of that growth occurred after the onset of Covid-19 (a 12% increase in employment).
• 18,600 additional physicians became hospital employees – 11,400 of that growth occurred after the onset of Covid-19 (5% increase in hospital employment).
• 29,800 additional physicians became employees of corporate entities – 11,300 of that growth occurred after the onset of Covid-19 (a 31% increase in corporate employed physicians).
By the end of 2020, seven in 10 physicians were employed by hospitals, health systems or corporate entities such as private equity firms or health insurers.
National Medical Practice Acquisitions and Ownership Trends
Hospitals and other corporate entities acquired 20,900 additional physician practices over the two-year period (a 25% increase).
• Hospitals acquired 3,200 additional physician practices over the two-year period, resulting in an 8% increase in hospital-owned practices.
• Corporate entities acquired 17,700 additional physician practices over the two-year period, resulting in a 32% increase in corporate-owned practices.
