Rural America lost 3,300 medical practices in five years, report shows
Rural areas of America have rapidly lost independent medical practices, as mergers and acquisitions by larger entities are absorbing hospitals and practices. According to a new data analysis, the number of independent doctors in those areas fell 43% from January 2019 to January 2024. Additionally, those losses equate to a decline in overall access to care.
The report comes from the nonprofit Physicians Advocacy Institute (PAI), based on research conducted by Avalere Health, a consulting firm. The organization used data from IQVIA OneKey for its analysis, focusing on health system ownership information and the location of independent physicians.
Over the five-year time frame used for the report, rural areas saw a total loss of physicians of 5%, equating to 2,400 practitioners. Further, nearly 3,300 rural medical practices closed, meaning people in rural areas lost 11% of their access to primary and specialty medical care.
According to the report, 12,467 independent physicians remained in rural areas at the start of 2024, compared to 21,956 in 2019.
PAI concluded that the departure of independent physicians and closing of practices can be correlated with corporate buyouts. Based on the data, corporate employment of doctors and corporate ownership of medical practices “surged” during the same time period.
Corporate entities nearly doubled their ownership of practices in rural areas and employed 57% more physicians in 2024 compared to 2019, the report found.
“Small, independent practices have been the cornerstone of medical care for many people in rural areas,” Kelly Kenney, CEO of PAI, said in a statement. “We’ve seen, with rural hospitals, that corporate acquisitions often lead to closures. We are concerned that this same profit-first approach will cause corporate owners to shutter rural practices that don’t produce high enough revenues, leaving patients without the access to care they need.”
To drive this point home, the PAI points to data showing that the number of physicians employed by larger organizations increased by 15% in five years. Meanwhile, the number of corporate-owned practices increased 11%.
The PAI stated that these statistics validate the concerns of advocacy groups and policy makers who fear consolidation would limit access.
“The overall decline in rural healthcare providers has been driven primarily by the decrease in independent physicians and practices and the acquisition of these practices by hospitals, health systems and corporate entities,” PAI wrote.
“While this shift reflects broader industry consolidation trends, it raises important policy considerations,” it added.
The full analysis is available 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.