A study published in the March issue of Health Affairs found that physician employment and turnover increased following private equity acquisitions of medical practices.
Researchers analyzed clinician-level data linked to practice acquisition records from 2014 to 2021, examining private equity acquisitions of 200 ophthalmology practices with 1,980 clinicians. The study used a difference-in-differences design to compare changes to employment and turnover in acquired practices to similar, unacquired practices over time.
Compared to matched controls, PE-acquired practices saw a 46.8% increase in clinician employment within three years of acquisition, driven by growth in ophthalmologists (30.7%) and optometrists (36.2%), according to the study.
PE acquisitions also led to more physician turnover, with the share of physicians leaving PE-acquired practices from year to year increasing by 13 percentage points, or 265%, after acquisition, relative to unacquired practices, researchers wrote.
"Findings highlight how PE acquisitions of physician practices are reshaping physician employment and workforce stability," the study authors concluded. "As PE expands its footprint, policy makers should monitor the long-term implications of PE ownership on physician employment and turnover to mitigate potential undesirable effects on patient health."