Private equity buyouts increase physician turnover by 265%, study finds
When physician practices are acquired by private equity firms, turnover increases, but the total number of clinicians hired by organizations also rises, according to a study published in Health Affairs. [1]
A research team from Brown University and Duke University analyzed clinician-level employment records from 200 ophthalmology practices acquired by private equity investors, using a “difference-in-differences” study design to measure staffing changes between 2014 and 2021.
In total, the practices employed 1,980 clinicians.
By matching the records to a control group of unacquired practices of a similar type and from the same time period, those taken over by private equity increased clinician employment by 46.8% within three years.
The authors said most of the growth came from newly hired ophthalmologists and optometrists, representing 30.7% and 36.2%, respectively. However, turnover for all physicians increased. The number of doctors who resigned from their positions year-over-year after a private equity buyout jumped by 265%, compared to practices that were not acquired by investment firms.
The authors said these changes in “workforce stability” could have negative implications for patient care continuity.
“As private equity expands its footprint, policymakers should monitor the long-term implications of PE ownership on physician employment and turnover to mitigate potential undesirable effects on patient health,” the researchers, led by Yashaswini Singh, PhD, from Brown University, concluded.
More studies are necessary to see if hiring trends hold true outside ophthalmology practices, as well as what impact physician turnover has on patient health.
The full study can be found here.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.