Association of Private Equity Acquisition of Physician Practices With Changes in Health Care Spending and Utilization

Abstract

Key Points Question What are the implications of private equity acquisition of physician practices for health care spending and utilization? Findings This difference-in-differences event study of 578 private equity−acquired dermatology, gastroenterology, and ophthalmology physician practices and 2874 similar independent practices found that spending, new and unique patient volume, and total encounters increased differentially compared with controls. The share of outpatient visits longer than 30 minutes increased, and there were modest differences along key outcomes within specialties. Meaning The findings of this economic evaluation suggest that among a large commercially insured population, private equity acquisitions of physician practices were associated with increased health care spending and several measures of utilization.