29,800 physicians exited private practice for insurers, PE firms & other corporations in 2 years

There was a 32 percent increase in physician practice acquisitions by corporate entities in the past two years, which added 29,800 formerly independent practice physicians, according to a June 29 report from Avalere.

Around 11,300 of those physicians joined corporate entities, such as insurers and private equity firms, after the COVID-19 pandemic.

The number of corporate-employed physicians also jumped 31 percent since 2019. By the end of January, nearly 20 percent of physicians reported being employed by a corporate entity besides hospitals and health systems.

Hospitals and health systems together with corporate entities owned 48.4 percent of physician practices as of January. Avalere reported that 48,400 physicians left independent practice last year for hospital or corporate employment, including payers and private equity firms.

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