May 14, 2026- PAI and Avalere Health have engaged in a long-term research collaboration to study how consolidation trends are impacting physicians. This report adds two additional years’ data (2024 and 2025) to previous research and provides insights into: (1) the trend of acquisitions of physician practices by hospitals/health systems (hereby referred to as “hospitals”) and other types of corporate entities; and (2) the dramatic shift of physicians from independent practice to employment. Trends were considered at various geographic levels: national, regional, state, and rural.
Key Findings
- More than four in five physicians (82.0%) are now employed by hospitals or other corporate entities, continuing a decade-long trend away from private practice.
- More than six in ten physician practices (63.9%) are now owned by hospitals or other corporate entities, driven by the marketplace race to acquire physician practices.
- Physician employment (80.2%) and physician practice ownership (67.8%) in rural areas mirrored national trends, reflecting the shift in the rural healthcare market.