Most physicians think private equity is bad for healthcare
More than 60% of U.S. physicians have a negative opinion about the rising influence of private equity (PE) in cardiology, radiology and other healthcare specialties, according to new survey results published in JAMA Internal Medicine.[1]
“PE offers clinicians an important source of capital amid market competition, financial uncertainty, and higher costs of practice,” wrote first author Jane M. Zhu, MD, an associate professor of medicine with Oregon Health and Science University, and colleagues. “PE may impact workplace environment, staffing decisions, and administrative and management pressures, potentially affecting clinician satisfaction and longevity. How physicians view PE is important to understand, as the success of this business model relies on the continued ability of PE-owned entities to recruit and retain physicians as employees.”
Zhu et al. explored survey data from members of the American College of Physicians. More than 500 physicians completed the survey in January 2023. Nearly 70% of those respondents were general internal medicine physicians. While 70.3% were salaried employees, another 21.9% were owners or partners of a physician group practice. Nearly 10% of respondents said a PE-backed company had previously shown interest in purchasing their practice, and 5.5% said they currently worked for a PE-backed management group.
Overall, 60.8% of physicians said they view the involvement of PE in healthcare in a negative light. Just 10.5% of physicians said they have a positive opinion about PE, and the remaining 28.8% said they were neutral. In addition, 52% of respondents said they think PE ownership is worse than being owned by a not-for-profit hospital or health system.
What is it about PE involvement that worries physicians the most? Its potential impact on physician well-being, healthcare prices/spending and health equity were the three most common concerns.
The authors also noted that the small subset of physicians who are owned by a PE-backed group were less likely to report high professional satisfaction and autonomy than physicians not owned by a PE-backed group. They were also less likely to say they would likely remain with their employer.
“While this survey had a limited sample size and is not generalizable to non-ACP members, our findings add to the dearth of evidence on PE’s perceived effects on physicians,” the authors wrote. “Our estimates of PE-involved physicians mirror those in the literature and suggest new areas for inquiry around clinical practice and workplace experience.”
Read the full research letter in JAMA Internal Medicine here.
Private equity’s impact in cardiovascular care
The rise of PE continues to be one of the biggest trends in all of healthcare, and its presence in cardiology seems to be growing by the day. Cardiovascular Associates of America, Cardiovascular Logistics and other PE-backed cardiology management groups are acquiring more and more practices, and the trend has shown no signs of slowing down.
Click here and here for additional insights into PE's impact on cardiovascular care in the United States.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.