Jordan Wolf

Monetizing Medicine: How Private Equity’s Changing Who Your Doctor Works For & What It Means For You

Richard Scheffler, Distinguished Professor of Health Economics and Public Policy at the School of Public Health and the Goldman School of Public Policy, addresses the current state of healthcare financing and the challenges of creating a healthcare system that is available for all.

Click here to access the video presented by UC Berkeley Retirement Center.

Private Equity–Acquired Physician Practices And Market Penetration Increased Substantially, 2012–21

By Ola Abdelhadi, Brent D. Fulton, Laura Alexander, Richard M. Scheffler | Published March 2024 in Health Affairs | Link to full report.

“Private equity (PE) firms have been acquiring physician practices at an increasing rate, raising concerns about such firms’ penetration at the physician level into local markets and the impact on health care quality and prices. However, limited knowledge exists about the extent of PE firms’ control in local markets. By linking data on PE acquisitions to physician data and using full-time-equivalent physicians as the base of assessment, we estimated the local market share of each PE firm within ten physician specialties at the Metropolitan Statistical Area (MSA) level.”

Monetizing Medicine: Private Equity and Competition in Physician and Practice Markets Addendums

“The addendums provide additional data and more detailed information regarding metropolitan statistical areas (MSAs) that had a private equity (PE) firm with 30+% or 50+% market share in 2021 for one or more of the ten physician specialties analyzed in the report. Addendum 1 provides the physician specialty, the name of the physician practice, and the PE firm with the 30+% or 50+% market share for most of the MSAs mentioned in the original report. Addendum 2 presents the MSA-level three year post-PE price increase for the affected specialty.”

Addendums authored by Richard M. Scheffler and Daniel R. Arnold | Link to the addenda and full report.

AAI, UC Berkeley and Equitable Growth Issue Addenda to Report on Private Equity Ownership in Healthcare

The report, covered by multiple media outlets including the New York Times and Washington Post, highlights private equity’s voracious acquisition of physician practices over the last several years, evaluating market penetration across 10 physician practice specialties within markets across the United States, the impact on market shares and concentration, and on prices and expenditures.

View the American Antitrust Institute press release article and the addenda.

Monetizing Medicine: Private Equity and Competition in Physician and Practice Markets

Check out the Petris Center’s recent report on the rise of private equity firms in acquiring physician practices, in collaboration with AAI and the Washington Center for Equitable Growth. The study covers ten medical specialties across the United States, offering insights into private equity’s impact on market concentration and healthcare expenditure. Lead author Richard Scheffler expresses concerns over shifts towards prioritizing profits over patient care, with far-reaching implications in the practice of medicine.

By Richard M. Scheffler, Laura Alexander, Brent D. Fulton, Daniel R. Arnold, Ola A. Abdelhadi | Link to the full report here