Dunham: “At a time when physicians are facing rising costs, workforce shortages, and growing administrative burdens, private investment is helping practices expand care, invest in new tools, and better serve patients.”
WASHINGTON, D.C. – Today, Health Management Associates released a new report on a survey of physicians commissioned by the American Investment Council, which found that physicians with direct experience in private equity-backed practices reported more favorable outcomes across every major category examined, including patient access, service line expansion, operational capacity, staffing, and innovation. The survey included physicians from 28 states and at least 12 medical specialties, including primary care and other specialty providers.
“At a time when physicians are facing rising costs, workforce shortages, and growing administrative burdens, private investment is helping practices expand care, invest in new tools, and better serve patients,” said Will Dunham, President and CEO of AIC. “Notably, approximately two-thirds of PE-backed physicians said private investment has either improved or maintained their discretion to make independent clinical decisions. Private equity provides the capital and operational expertise that enables physicians to focus on what they do best.”
The survey highlights several findings demonstrating how private equity investment is supporting physicians and patients:
- Two-thirds of private equity-backed physicians report improved patient access: The majority of private equity-backed physicians reported that private equity investment improved patients’ ability to access care in their communities. Respondents most often cited better care coordination, shorter wait times, and more efficient scheduling.
- More than two-thirds reported a positive impact or no effect on patient interactions: In addition to reporting either a positive or no adverse effect on their ability to interact with patients, approximately two-thirds of PE-backed physicians also reported stable or improved discretion to make independent clinical decisions.
- More than three in four private equity-backed physicians report expanded care options: More than three-quarters of private equity-backed physicians reported that their practices added new service lines or expanded existing ones, including in communities facing shortages in maternal health, behavioral health, and other essential clinical services.
- Four in five private equity-backed physicians report strengthened operational capacity: Four in every five private equity-backed physician respondents said private equity investment enabled new capital investments that expanded staffing, facilities, and technology capacity.
- Most private equity-backed physicians report increased physician staffing: Most private equity-backed physicians reported a stable or increased number of doctors available to patients after the introduction of private equity investment, while fewer than one in five reported significant reductions.
- Private equity-backed physicians reported greater access to new technologies and innovative approaches: Physicians reported greater access to new technologies and expanded digital tools, and 90% of physicians without private equity experience said private equity investors are open to new approaches in patient care. These investments allow physicians to spend more time caring for patients and less time on administrative tasks, like paperwork and insurance negotiations.
- The survey captured a stark difference between the lived experience of physicians who have direct PE-experience and the perception of PE among those who do not: According to the survey, physicians without direct PE-experience were more likely to mirror common critiques of the industry, including concerns about staffing shortages or reduced autonomy. But physicians with direct experience reported better outcomes as a result of PE investment across every category the survey covered.
As policymakers and regulators debate the future of health care delivery, the survey provides an important perspective from the frontline physicians with firsthand experience. The findings suggest that private equity investment supports physicians in building a healthcare system that enables greater patient access and expanded care offerings.
Read the full report here.