Exposing The Hidden Hand Influencing Many Modern-Day Doctors
It's a trend that has impacted more and more practices across the nation in recent years. ShutterstockNews that is entertaining to read
Subscribe for free to get more stories like this directly to your inboxWhether it’s for an annual check-up or to deal with a medical issue, we all want to believe that our healthcare providers are motivated only by a desire to help us reach our full potential.
But somebody is behind the scenes paying your doctor, right? So if we want to find out exactly what factors play a role in modern medicine, it’s important to find out who’s writing those checks.
The impact of private equity firms
Just like in many other sectors of the economy, a growing number of doctor’s offices are owned by private equity firms that invest in hopes of making a profit.
Here’s a brief rundown of the situation:
- In about one-fourth of local markets, these firms own more than 30% of all practices.
- That includes 13% of markets where more than half of the offices are under private equity control.
- The higher that percentage goes, the more insurers and patients pay for healthcare.
Across those markets where private equity firms control 30% or more of physician practices, the cost of gastroenterological, dermatological, and OB-GYN care is considerably higher than elsewhere.
How experts perceive the issue
As Laura Alexander of the Washington Center explained, doctor’s offices in only a select number of markets were being scoped up by these firms just a few short years ago.
Now, instead of small practices owned by the doctor, faceless entities are in control. It can make sense from a business standpoint and, if done correctly, can even improve the quality of care.
But these investors must be held accountable for their decisions … and that’s often not the case.
Health economics professor Richard Scheffler put it succinctly: “We’re seeing a fundamental change in how medicine is being practiced in the U.S.”