Most physicians view private equity’s involvement in healthcare negatively, according to new survey data published Monday in JAMA Internal Medicine [1].
Nearly 61% of those polled have a pessimistic outlook toward PE compared to 11% who view it positively, and 29% who hold a neutral opinion on such investors’ involvement in the field.
The findings are derived from a survey of 525 medical doctors, conducted by the American College of Physicians. Results come as investors have shown growing interest in radiology over the last decade, with PE operators holding a dominant market share in some geographies.
“With private equity buying up an increasing number of physician practices, and spinning those into for-profit entities, it is important we examine the impact this change has on physicians, patient care and the overall healthcare sector,” Omar T. Atiq, MD, president of the ACP, said in a March 11 announcement. “There are limited existing surveys of medical trainees that document concerns about private equity investment in some subspecialties; our survey assesses the views of internal medicine physicians more broadly.”
Survey subjects were gathered from the ACP’s IM Insider Research Panel. Each year, the college invites 1% of members to take part in the group, narrows the candidates by random sampling to ensure balance, and adds additional nonmember internal medicine participants.
Lead author Jane M. Zhu, MD, and colleagues conducted the investigation in January 2023, with 525 filling out the survey (a 57% response rate). Of those, 67% were general internal medicine physicians, 70% were salaried employees, and 22% were owners or partners in physician group practices. Another 10% (or 52 participants) said a private equity firm had expressed interest in purchasing their practice and nearly 6% worked for a PE-acquired healthcare company.
More than half of respondents (52%) viewed PE ownership as worse or much worse when compared to independent ownership. And 49% said they believe PE ownership to be worse or much worse than not-for-profit hospital or health system ownership. Those surveyed also carried negative views about PE as it pertains to physician well-being (58%), healthcare prices or spending (57%), and health equity (51%). However, they were also more likely to view innovation as a positive aspect of private equity ownership.
Meanwhile, PE-employed physicians (n = 29) were less likely to report high professional satisfaction, and autonomy compared with others working outside of private equity. Fewer PE-employed physicians reported being somewhat likely or extremely like to remain with their employer.
In a corresponding opinion piece [2], JAMA Internal Medicine Associate Editors called the findings “striking.”
“Before putting up ‘for sale’ signs across the healthcare system, it is incumbent on physicians, regulators and professional societies to call for more evidence and to ensure patient access to high quality care—before it is too late,” Cary P. Gross, MD, and Giselle Corbie, MD, wrote.
You can read more about the research letter in JAMA at the link below. Another survey published in 2020 found that 86% of early career radiologists believe corporate medicine is having a negative impact on the specialty.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.