Evolving Physician-Practice Ownership Models

Prepared in collaboration with the American Hospital Association Center for Health Innovation

Physician practice acquisitions and/or equity investment by nontraditional players, such as health plans, private equity investors, venture capitalists and large employers, is a growing trend. These new entrants give physicians additional options for where and how to work.

In a report prepared with the American Hospital Association (AHA) Center for Health Innovation, Manatt Health reviews current trends in physician-practice ownership models that could present threats to hospitals’ and health systems’ current operating models, as well as opportunities for different types of mutually beneficial relationships. Developing strong physician relationships has always been a required competency of health system leadership—and the importance of this skill set will only increase in the current environment.

The report includes an overview of key trends and the driving forces behind them; lessons learned from nontraditional physician practice arrangements; and implications for hospitals’ and health systems’ organizational strategies, physician relationship strategies and provision of care to patients. The content is informed by external research, discussions with physician leaders at the AHA’s Healthcare Leadership Systems Retreat and surveys of AHA members. As a companion piece to the report, Manatt Health also created an infographic showing new investors in physician-private ownership models, including a representative sample of market segments and companies.

Click here to read the full report—and here to access the infographic.



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