Physician Private Practice Decline: AMA Data
- A recent American Medical Association analysis reveals a important shift away from private practice physician jobs.
- In 2024, just over 42% of physicians worked in private practices, a sharp drop from 61.4% in 2012.
- The AMA study also found a decrease in physician ownership. The percentage of physicians partially owning their practices fell from 53.2% in 2012 to 35.4% in 2024.
The American Medical Association’s (AMA) data paints a stark picture: the decline of physician private practice jobs is accelerating. Since 2012, the number of doctors in private practice has plummeted, a result of pressures including unfavorable payment rates, mounting costs, and complex regulations. Hospitals now employ a significantly larger share of physicians, reshaping the healthcare landscape.This shift towards hospital-owned practices and private equity-backed firms signals a critical turning point for the primary_keyword, impacting how healthcare is delivered. Key factors driving this trend, according to the AMA, include medicare reimbursement rates and the regulatory burdens faced by physicians and practices alike, offering a glimpse at how the secondary_keyword will operate in the coming years. News Directory 3 explores all angles of this complex situation. Discover what’s next for both doctors and those who depend on their care.
Private Practice Physician Decline Accelerates, AMA Analysis Shows
Updated June 03, 2025
A recent American Medical Association analysis reveals a important shift away from private practice physician jobs. inadequate payment, high costs and regulatory burdens are pushing doctors toward hospital employment or private equity-backed firms.
In 2024, just over 42% of physicians worked in private practices, a sharp drop from 61.4% in 2012. Conversely, hospital-owned practices now employ over a third of the nation’s physicians, an 11 percentage point increase since 2012. Private equity firms employ nearly 7% of doctors, up from 2020.
The AMA study also found a decrease in physician ownership. The percentage of physicians partially owning their practices fell from 53.2% in 2012 to 35.4% in 2024.
small practices are also dwindling. In 2024, less than half of physicians worked in practices with 10 or fewer doctors, a first as the AMA began its survey. In the early 1980s,about 80% of physicians worked in small practices.
The report identifies three primary reasons for physicians selling to corporate entities: negotiating better payment rates, improving resource access, and managing regulatory demands.
“The share of doctors working in practices wholly owned by physicians is unraveling under compounding pressures,” said AMA President Bruce Scott.“The cumulative impact of burdensome regulations,rising financial strain,and relentless cuts in payment poses a dire threat to the sustainability of private practices.”
Scott added that unfavorable medicare reimbursement rates exacerbate these issues. He noted that, adjusted for inflation, Medicare physician payments have fallen 33% in 25 years, destabilizing private practices.
MedPAC, advising congress on Medicare policy, suggested tying physician pay to inflation. though,industry groups argue this update may still result in deficits for Medicare providers.
Reports suggest that healthcare consolidation correlates with decreased care quality and less patient time. Other research indicates consolidation leads to higher healthcare costs without improved care.
Calls are increasing for regulators to scrutinize healthcare deals more actively, with federal and state regulators considering increased oversight of healthcare transactions.
What’s next
The trend away from private practice physician jobs is expected to continue unless payment models and regulatory burdens are addressed,potentially impacting healthcare costs and quality.