Here are eight statistics and trends showcasing how the physician practice landscape is evolving:
1. Four pharmacy benefit managers now control more than two-thirds of the market that determines which drugs are available, how much they cost, and how they’re reimbursed, according to a July report from the American Medical Association. This consolidation is leading physicians to face narrower formularies and more prior authorization hurdles.
2. Independent physician practices are rapidly disappearing as hospitals, insurers, corporate entities and private equity firms expand their reach, according to a Government Accountability Office report.
3. Only 42% of physicians worked in private practice in 2024, down from 60% in 2012.
4. Nearly 47% of physician practice owners are over age 55 and actively exploring retirement options.
5. The percentage of payer-operated physician practices has grown significantly since 2016, according to a study published in July in Health Affairs Scholar.
6. Becker’s has reported on several physician practice closures so far in 2025, for reasons ranging from staffing issues to rising operational expenses.
7. The percentage of physicians working in a solo practice setting has consistently decreased since 2014, according to data from the American Medical Association.
8. Physician deals rebounded in 2024, driven largely by new players — pharmaceutical companies, insurers and pharmaceutical services providers, according to a blog post from VMG Health.
