It’s no secret that private practices are a dying breed. In 2025, the percentage of clinicians in private practice plummeted to 45%... and I can’t imagine that percentage will increase anytime soon. As the landscape evolves, hospital systems are monopolizing.
The Rise of Hospital Systems
Across the country, large hospital systems and corporate entities rapidly are acquiring independent practices. The way medicine is practiced is changing.
According to the American Medical Association’s report, three primary forces are pushing private practices to sell:
- Payment Negotiation Power
Independent practices lack leverage when negotiating with insurance companies. Larger systems, on the other hand, can command higher reimbursement rates simply due to their size.
- Access to Resources
From advanced technology to staffing infrastructure, larger organizations provide tools that are often out of reach for smaller practices.
- Administrative Burden Management
Billing, compliance, prior authorizations, and regulatory requirements have become overwhelming. For many clinicians, the administrative load is no longer sustainable without institutional support.
At its core, this shift symbolizes one truth: The people that hold the money hold the power.