Corporate Ownership Is Transforming How Physicians Experience Medical Practice

Corporate entities now employ 82% of all practicing physicians nationwide—and nearly three quarters of these physicians have only experienced this model. How does the corporatization of medical practice ownership shape how physicians practice medicine and serve patients?

PAI partnered with Healthsperien’s Center for Health Research, Policy & Strategy to quantify the experiences and opinions of more than 1,000 physicians in the United States employed by hospitals, health systems or other corporate entities like health insurance companies.

Key Findings

The physicians surveyed revealed that corporate ownership’s policies are fundamentally reshaping most aspects of medical practice, ranging from clinical and administrative decision-making to career plans, creating obstacles that make it difficult to provide high-quality patient care and act in patients’ best interest. 

Nearly 90% of employed physicians reported some level of burnout and almost half are actively looking for a new job. Most reported pressure to prioritize corporate interests over patient care, including increasing patient volume and keeping referrals within their system. Administrative demands, including prior authorization and electronic health record (EHR) requirements, are an ongoing burden to physicians and patients.

CLINICAL DECISION-MAKING IMPACTED
Physicians feel pressured to put corporate interests first, and patients second.

• 63% face corporate barriers to referring patients out-of-network
• 59% feel pressure to keep patients within their health system
• 47% frequently feel pressure to prioritize patient volume over optimal care

CARE DELIVERY CHALLENGES
Administrative and technological barriers burden physicians’ practice.

• 89% are satisfied with the quality of care they provide … but …
• 88% reported faulty medical equipment in the past year
• 73% say patients cannot get timely

PAPERWORK OVER PATIENTS
Prior authorization and other administrative demands delay care and drive patients to abandon treatment.

• 78% say EHR documentation is burdensome
• 76% report delays in care or treatment due to prior authorization
• 61% say prior authorization leads patients to abandon or delay recommended treatment

PROFESSIONAL CHALLENGES = PERSONAL CHALLENGES
Burnout is driving some to unionize, or to leave the profession altogether.

• 88% report symptoms of burnout, most heavily felt by younger and midcareer physicians
• 47% would likely join a trade union
• 44% are looking for a new job or considering it

INDEPENDENCE ERODED
For most practicing physicians, corporate ownership is all they’ve ever known.

• 72% have only experienced the corporate ownership employment model
• 28% practiced in a physician-owned setting before their current employment
• 35% with experience in a physician-owned practice cite lack of clinical autonomy as reason for considering a new job

Full report

Key findings

Release