Why Physicians Are Selling Their Medical Practices

Why Physicians Are Selling Their Practices — And Why Hospitals Are Acquiring Them

Physicians are struggling with the reality of operating a private practice in the era of healthcare reform.

© 2015 Jackson Healthcare

Doctors’ top two motives for selling their practice to a hospital/health system:

1.  Costs of Maintaining Practice 2.  Cuts in Reimbursement


Physicians understand they are trading independence for less pressure and risk.

Security > Autonomy


I pretty much knew what would happen — giving up autonomy and having to meet certain expectations to remain employed. — OB/GYN


Doctors said there are five advantages to employment:•  Elimination of concerns about their

practice’s financial viability (71 percent)

•  Less administrative work (43 percent)

•  Less stress (42 percent)

•  Ability to take time off (40 percent)

•  Stability/security (37 percent)


Why Hospitals Acquire Practices

68 percent of physicians reported approaching the hospital to initiate acquisition talks.


Hospitals’ top two motives for acquiring practices: 1.  Expand services2.  Meet community need


Hospitals seek practices that are a fit with their

culture and organization.


Cultural alignment has been a challenge with some physicians, according to executives.


Primary care practices have made up the majority of acquisitions by hospitals.


Hospital executives are satisfied with

their practice acquisitions.


Physician Attitudes After Acquisition

How are acquired physicians adjusting to the realities of employment?


70 percent of physicians said their acquisition expectations were met. 48 percent said fully met

22 percent said mostly met


94 percent of the physicians hoping to decrease their administrative burden have succeeded.


57 percent of physicians who were hoping to work less hours have succeeded.


32 percent of acquired physicians are making more money than they were in private practice.


40 percent of acquired physicians are making about the same as in private practice.


No longer being the primary decision-maker is something with which former private practice physicians struggle.


77 percent of physicians said that if they could go back and do it over knowing what they know now...they would.


Survey Background•  National online survey of physicians

•  Telephone interviews with 23 hospital executives who had acquired at least one physician practice within the past three years

•  Telephone interviews with nine physicians who had sold their practice to a hospital/health system

•  All surveys conducted between May and June 2015

About Jackson Healthcare Headquartered in Atlanta and among the largest healthcare staffing companies in the U.S., Jackson Healthcare serves more than seven million patients in over 1,300 healthcare facilities. The company also helps hospitals optimize real-time patient care logistics. Jackson has earned national media coverage by providing innovative solutions to healthcare problems, in addition to championing local, national and international charitable work. Atlanta Business Chronicle named Jackson Healthcare the city’s “Best Place to Work” in 2014 and 2015 and “Healthiest Large Company” in 2015. Get more physician trend data at jacksonhealthcare.com/physician-trends
