Doctors Affiliated With Private Equity Firms Charge More Than Others: Study

A new study finds that patients visiting primary care doctors affiliated with major hospitals or private equity-owned facilities may not be receiving a better standard of care, while paying higher costs.

The share of primary care doctors affiliated with hospitals rather than independent practices has risen by 23% over the past decade, according to a study published in JAMA Health Forum on January 17. Researchers warn that more doctors than ever are now linked to large hospitals or private equity firms, which could pose a serious health risk to Americans.

Healthcare costs have risen in recent years, with patients facing higher insurance premiums and coinsurance, while doctors contend with rising expenses and reduced insurance reimbursements.

The study notes that this trend has led to more primary care doctors being acquired by private equity firms seeking profit, or affiliating with hospitals to reduce overhead costs.

Researchers from Brown University School of Public Health analyzed data from PitchBook and IQVIA to study network-associated rates and doctor affiliations. They studied 198,000 primary care doctors in 2022, including more than 226 million negotiated prices across four national insurers, including Aetna, Blue Cross Blue Shield, Cigna and United Healthcare.

The study found that nearly half of all primary care doctors are now affiliated with hospitals, up from 25% in 2009 to 48% in 2022. Over the same period, 1.5% of doctors became linked to private equity firms.

The data indicates prices for doctors affiliated with private equity firms or hospitals were higher than prices among independent doctors who operated their own offices. Prices for office visits and other care costs among hospital-affiliated doctors were 11% higher, or nearly $15 higher per treatment than independent doctors.

Prices for doctors owned by private equity firms were 8% higher, or $9.56 higher per treatment, than those for independent doctors.

Researchers noted that doctors affiliated with private equity firms were concentrated in certain regional markets that were considered more profitable. But overall, primary care doctors affiliated with hospitals and those affiliated with private equity firms had higher prices while offering the same services.

Private Equity Healthcare Concerns

Primary care doctor’s offices are not the only form of healthcare being acquired by private equity firms. They are also gobbling up an increasing number of emergency rooms.

Early last year lawmakers raised concerns over the lack of quality healthcare patients receive in ERs managed by private equity firms. In addition, a report published by Harvard researchers in early 2024 indicated patients face an increased risk of being injured or suffering a serious health side effect in hospitals owned by private equity firms.

Just last month a report released by the U.S. Senate Budget Committee warned private equity firms are a major threat to U.S. healthcare. The report said private equity firms prioritize profits over patient care as they typically buy hospitals, drastically cut costs, and resell the hospitals later for a profit after cannibalizing its services and equipment.