"Private Practice Isn't Dead...Yet," Says CMO Bryan Vartabedian, Citing AMA Study
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Contributed by: Kate Gamble
Summary
The 2024 Physician Practice Benchmark Survey from the American Medical Association highlights a notable decline in private practice among U.S. doctors, dropping from 60% in 2012 to under 40% today. Hospital and health system ownership has increased to 34.5%, while private equity-owned practices now represent 6.5% of the market. Key reasons for physicians selling their practices include the need for better payer negotiations, access to costly infrastructure, and the desire to reduce administrative burdens. Although the trend indicates a move toward larger health systems for economic reasons, nearly half of private practice physicians still operate in small groups of five or fewer, suggesting that many independent practices persist. This shift indicates a need for technology solutions that cater to evolving healthcare delivery models.
