Physicians in the United States are now just as likely to work as an employee of a health system or for another employer as they are to be in a private practice. This marked shift was noted in the American Medical Association’s (AMA’s) 2020 Physician Practice Benchmark Survey, which was released in October 2022. This was the first time that the AMA reported that less than half of the physicians in its membership worked for private practices (those wholly owned by physicians). Back in 2012, 60% of the physicians participating in the AMA survey worked for private practices but by 2020, that number was down to 49.1%.
If this trend continues, and more private practices become acquisition targets of hospitals and health systems, partners in private practices would do well to carefully consider the features of a potential acquiring hospital or health system: a) financial viability of the acquirer, b) productivity expectations after the acquisition, and c) benefits package offered. Additionally, an acquisition target would want to employ counsel to oversee legal analysis of the deal and agreements, Medical Economics reports. Read more.
