Radiologists say hospital physician-practice acquisitions driving up healthcare costs

Radiologists and other interventional specialists say hospitals’ continued push to purchase up physician practices is driving up healthcare costs. 

The Society of Interventional Radiology and other members of a coalition of imaging industry stakeholders are pointing to a new analysis from the Progressive Policy Institute. It notes that, between 2019 and 2023, the share of physician practices owned by hospitals and other corporate entities leapt from 39% to 59%.

Meanwhile, the proportion of docs employed by such entities increased from 62% to 78%. SIR, AdvaMed, the American College of Radiation Oncology, Philips, Abbott and others in the Office-Based Facility Association (OBFA) contend more must be done to reverse these trends and protect private practices.

“Office-based facilities are a cornerstone of affordable, patient-centered care—but they’re under pressure like never before,” Robert Tahara, MD, policy chair of the association and a Pennsylvania-based vascular surgeon, said in a Jan. 15 announcement. “We urge policymakers at all levels to act now to support payment policies and competitive practices that keep healthcare accessible, affordable, and rooted in community practice.”

Radiologists, radiation oncologists, vascular surgeons and other industry stakeholders first formed the Office-Based Facility Association in 2021. Their advocacy has come in response to continued Medicare cuts to office-based physicians, placing them at a potential disadvantage when competing with others in hospital settings. 

The new report from the Progressive Policy Institute, a D.C. think tank, is based on a literature review of 70 different economic studies on this topic. It demonstrates a “rapid decline” in independent practice counts, with hospital acquisitions contributing to a sizable drop in doc ownership across nine specialties. In some professions, such as general surgery and oncology, independent ownership has plummeted 42%. 

Rural communities have been hit hardest, according to the policy institute, with independent practice ownership falling 34% in these geographies compared to 22% in urban areas. The report also found that consolidation is continuing to drive up costs. Hospital acquisitions correlate with average price increases of 14% with some seeing upticks as high as 33%. Almost half of these price increases are driven by “reimbursement rules that favor hospital owned practices,” the report contends. 

“This study underscores what many of us already see in the field: as hospitals consolidate physician practices, patients lose choice, community providers struggle to survive, and the cost of care rises,” Tahara added. 

The Society of Interventional Radiology and others in the association note that the 2026 physician fee schedule represents the first CMS regulation in recent years to recognize the “plight” of private practices. It does so by increasing payment for office-based interventional providers who accept Medicare. The association is urging both CMS and Congress to build on this momentum by passing legislation focused on “paying for the work of physicians and allied professionals and reimbursing separately for office-based practice expense.” 

Other members of the coalition include the American Association of Clinical Urologists, American Vascular, the American Vein and Lymphatic Society, Boston Scientific, Medtronic, the Outpatient Endovascular and Interventional Society and numerous others.