At least 47% of physicians were employed by or affiliated with hospital systems in 2024, up from around 30% in 2012, according to a new Government Accountability Office report.
Here are five GI trends from the report:
1. Private equity roll-ups are shaping GI. One firm grew a GI network from 110 to 400+ sites in four years, reaching a $2.2 billion valuation before physicians bought back ownership with new PE support.
2. Market concentration is rising. In some metro areas, private equity firms employ over 30% of gastroenterologists, often with a single firm dominating local market share.
3. Costs increase after consolidation. Medicare colonoscopy spending rose nearly $4,000 per physician per year after hospital consolidation, driven by facility fees and higher throughput.
4. Commercial prices follow the same trend. Private equity-backed consolidation raised commercial prices by 14% in GI and double-digit percentages in other specialties, with bigger jumps in highly concentrated markets.
5. Quality impacts are mixed. Consolidation has been linked to slightly higher rates of complications after colonoscopy and less use of deep sedation, highlighting trade-offs in cost vs. patient outcomes.
