Factors Driving Consolidation in the Physician Provider Market
Consolidation is occurring at a rapid pace, and a lot of it is being driven by the following factors:
- Many new and young physicians are opting out of owning a practice due to lifestyle and financial changes, including higher student loan debt and desire for a defined salary and a more balanced schedule.
- Ongoing changes in quality reporting requirements and growing reimbursement scrutiny are increasing the cost and complexity of running a physician practice. Physician practices have had to invest in additional staff, systems and time to meet these increasing demands. The implementation of MACRA is exacerbating this problem for practices.
- The consumer environment in healthcare is changing dramatically as costs are shifting to patients from employers and insurers. As consumers bear more of their healthcare costs, they are seeking out information on pricing and quality and increasingly shopping around to find the best quality/value physician for their specific healthcare needs.