Physician Practice Acquisitions: What Drives Them and Implications for Consumers and Payers

American Hospital Association October 21, 2025
Molly Smith - Group Vice President for Public Policy, American Hospital Association, John Allison, AHA Senior Associate Director of Health Analytics and Policy

Physicians are increasingly choosing to be employed instead of running their own small practices. Though a far higher percentage of physicians remain in private practice than the overall rate of self-employment in the U.S. (42% of physicians versus 10% of all workers), the decline in private physician practice is consistent with broader economic trends as jobs and the demographics of the workforce have changed. However, policymakers, academics and other stakeholders have homed in on the downward trend in private physician practices to explore the implications for consumers and payers.

Recently, the U.S. Government Accountability Office published a report surveying the literature on physician consolidation and certain effects on the health care landscape. The report primarily considers the impact of physician...

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