Private Equity Acquisitions In Primary Care: Changes In Utilization, Spending, And Workforce.

Area of Science:

• Health Services Research
• Healthcare Management
• Health Economics

Background:

• Primary care is crucial for population health but faces underinvestment and workforce shortages in the U.S.
• Private equity (PE) investments offer potential to expand access through value-based care and improved IT infrastructure.
• Concerns exist regarding PE's focus on short-term profits and potential impacts on physician productivity and patient care.

Purpose of the Study:

• To evaluate the impact of private equity acquisitions on primary care practice operations and service delivery.
• To analyze changes in patient volume, service utilization, and workforce composition following PE investments in primary care.

Main Methods:

• Utilized a stacked difference-in-differences design.
• Analyzed national Medicare claims data for 225 primary care practices acquired by PE between 2016 and 2022.

Main Results:

• PE acquisitions led to a 30% increase in billed services and an 11% increase in patients seen per primary care physician.
• Patients in PE-acquired practices received 12.9% more additional services, primarily laboratory testing and Medicare annual wellness visits.
• PE acquisitions increased the number of primary care physicians and advanced practice providers, with advanced practice providers showing faster growth.

Conclusions:

• Private equity investments can enhance primary care service utilization and patient access.
• Increased reliance on advanced practice providers is a key component of PE-driven changes in primary care delivery.
• PE investments show potential for expanding primary care capacity, particularly through increased service volume and workforce augmentation.