The Rise of Private Equity in Physician Practices: Impact on Prices
Private equity firms are rapidly acquiring physician practices, consolidating a significant share of the market and leading to price increases in various medical specialties, according to a study. The research found that private equity acquisitions were associated with price hikes in eight out of ten specialties, particularly in metropolitan areas where a single private equity firm controlled over 30% of the market. Prices for gastroenterologists rose by 14%, oncologists by 16%, and ophthalmologists by 9%. The study authors called for closer examination of the effects of private equity investments in medical groups, as most acquisitions occurred without federal antitrust scrutiny.