Physician Turnover Increased In Private Equity-Acquired Physician Practices

Area of Science:

• Health Policy
• Health Economics
• Ophthalmology Practice Management

Background:

• Private equity (PE) firm consolidation of physician practices is accelerating.
• Concerns exist regarding PE's focus on short-term profits potentially increasing physician turnover and disrupting patient care continuity.
• Limited evidence exists on the specific effects of PE acquisitions on physician employment and turnover.

Purpose of the Study:

• To examine the impact of private equity (PE) acquisitions on physician employment and turnover in ophthalmology practices.
• To quantify changes in clinician numbers and the rate of physicians leaving practices post-PE acquisition.

Main Methods:

• Utilized clinician-level data linked to practice acquisition data from 2014-2021.
• Employed a difference-in-differences design to compare PE-acquired practices with matched controls.
• Analyzed data from 200 ophthalmology practices involving 1,980 clinicians.

Main Results:

• PE-acquired practices saw a 46.8% increase in total clinicians within three years post-acquisition.
• Growth included a 30.7% rise in ophthalmologists and a 36.2% rise in optometrists.
• Physician turnover increased by 13 percentage points (265%) in PE-acquired practices compared to controls.

Conclusions:

• Private equity acquisitions are significantly reshaping physician employment dynamics and workforce stability in ophthalmology.
• The rise in physician turnover necessitates monitoring by policymakers to address potential negative impacts on patient care.
• Findings underscore the need for careful consideration of PE's long-term effects on healthcare delivery.