Private equity (PE) acquisitions of physician practices are driving a 265% increase in physician turnover, according to a new study published in Health Affairs. While total clinician employment also rises post-buyout, researchers warn that high turnover could impact patient care continuity.
A joint research team from Brown University and Duke University analyzed 1,980 clinicians across 200 ophthalmology practices acquired by PE firms between 2014 and 2021. Using a difference-in-differences study design, they compared these practices to similar independent practices to measure staffing changes.
Key Findings
- Clinician employment increased by 46.8% within three years of a PE acquisition.
- Most growth came from new ophthalmologists (30.7%) and optometrists (36.2%).
- Physician turnover surged 265% post-buyout, compared to non-PE-acquired practices.
The researchers noted that while acquisitions expand hiring, the spike in physician resignations raises concerns about workforce stability and its potential effects on patient care.
Policy Implications & Future Research
“As private equity expands its footprint, policymakers should monitor the long-term implications of PE ownership on physician employment and turnover to mitigate potential undesirable effects on patient health,” said lead researcher Yashaswini Singh, PhD, of Brown University.
Further research is needed to determine whether these trends hold across other medical specialties and how physician turnover affects patient outcomes.
The full study is available here.
