PE-backed physicians cost Medicare less than hospital physicians: Study

Becker's Healthcare September 25, 2024
Patsy Newitt

Medicare expenditures in private equity-affiliated private practices were an average of 9.8% lower than for patients treated in hospital-affiliated practices in 2022, according to a recent study by Avalere and the American Independent Medical Practice Association.

The study looked at physicians specializing in cardiology, gastroenterology, urology, oncology and orthopedics from 2018 to 2022.

Here are five key notes to know:

1. The study found that Medicare patients of private equity-affiliated private practices had Medicare expenditures in line, and sometimes lower, than patients of unaffiliated private practice physicians or those in hospital or corporate settings.

2. Per-beneficiary Medicare expenditures were an average of $963 lower for beneficiaries whose physicians moved from an unaffiliated model to a private equity...

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