Why Private Practices Sell to Hospitals

Carol Kane, PhD, of the American Medical Association recently published a policy research report. In the report, she examines how medical practices have changed since 2012. She found that a materially higher percentage of private practices are owned by hospitals today than twelve years ago. In 2024, 42.2 per cent of physicians were in private practices wholly owned by physicians. In 2012, that percentage was 60.1 percent. The data show the drivers for this change is due to inadequate payment rates, costly resources, and burdensome regulatory and administrative requirements. She grouped the top reasons why physicians sold to hospitals. Her results are displayed below.