AMA Study: Practice Owners Are No Longer the Physician Majority

CHICAGO — Less than half of patient-care physicians had an ownership stake in their medical practice, according to a newly updated study on physician-practice arrangements by the American Medical Assoc. (AMA). This marks the first time physician-practice owners fell below a majority of the nation’s patient-care physicians since the AMA began documenting practice-arrangement trends.

The share of patient-care physicians with ownership stakes in a medical practice declined 6{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} to 47.1{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} in 2016 from 53.2{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} in 2012. In contrast, the share of patient-care physicians with employed positions increased about 5{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} to 47.1{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} in 2016 from 41.8{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} in 2012. As a result, there were equal shares of physician employees and physician practice owners in 2016, while 5.9{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} of patient-care physicians were independent contractors.

The preference of younger physicians toward employed positions has had a prominent impact. Nearly two-thirds (65.1{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5}) of physicians under age 40 were employees in 2016, compared to 51.3{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} in 2012. The share of employees among physicians age 40 and older also increased between 2012 and 2016, but at a more modest pace than younger physicians.

“Patients benefit when physicians practice in settings they find professionally and personally rewarding, and the AMA strongly supports a physician’s right to practice in the setting of their choice,” said AMA President Dr. Andrew Gurman. “The AMA is committed to helping physicians navigate their practice options and offers innovative strategies and resources to ensure physicians in all practice sizes and setting can thrive in the changing health environment.”