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Corporate Ownership of Primary Care is Rising—But at What Cost?

A new study from Brown University School of Public Health highlights the increasing corporate ownership of primary care physicians, with nearly half affiliated with hospitals and a growing share tied to private equity firms. Analyzing data from major insurers, researchers found that hospital-affiliated physicians charge 10.7% more per office visit than independent doctors, while private equity-affiliated physicians charge 7.8% more. Despite these higher costs, there is no clear evidence of improved patient or physician outcomes. Researchers suggest that corporate consolidation in primary care is driven by demand for coordinated care and the ability to negotiate higher rates with insurers.

Some insight from our CEO, James (Jim) Rodriguez, LFACHE

This article reinforces my concerns about private equity’s role in healthcare and raises a red flag about hospital acquisitions of physician practices and their impact on costs. Office visit prices at hospital-affiliated primary care practices increased by 10.7%, while private equity-owned practices saw a 7.8% rise—without clear evidence of improved patient outcomes. In other words, we’re paying more without getting a better product. Physician buyouts are more common in northern states, while Florida and Texas lead in private equity affiliations. Interestingly, areas with more hospital acquisitions tend to have fewer private equity buyouts. What does that tell us? Let me know your thoughts.

To learn more about this concerning update, read the full article linked below.
https://lnkd.in/gWSxMGZy

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⚡️Breaking News in the Health Insurance Industry ⚡️
4 nonprofit health systems have launched new health plan, Longitude Health

Comments from our CEO James (Jim) Rodriguez, FACHE:

Ok health insurance carriers…pay attention! Four (count them, FOUR) health systems have banded together to offer a new health plan called Longitude Health. The four owners, investors, operators are Baylor Scott & White Health, Memorial Hermann Health System, Novant Health and Providence. It appears that these delivery systems decided to take the plunge because of the carrier turmoil in their respective regions. For example, in Central Texas there are now only 2 major small group carriers with any real gravitas. They are United Healthcare and Blue Cross Blue Shield with Baylor Scott & White health plan trying to make inroads. And while the literature is shouting that rate increases for 2025 are going to be in the mid-single-digits we are seeing double digits across the board. This new entre may not bode well for the majors.

To read the full article by Modern Healthcare, visit the link below.
https://lnkd.in/g3EPYn5Y

Here we are at another Legislative Session and we are going great guns! Our goal is to modify the statute that created TexHealth so that TexHealth does not have to have County Commissioners Court approval. When TexHealth was first created as a health plan for small business it made some sense for the County Commissioners to be involved in oversight. Now however, it is not needed and TexHealth should be available statewide to those who need the help paying for their health insurance premiums. We have proposed language to modify the original statute and we just need the Legislators to approve it. This will take visits to many offices to explain the rationale. If we are successful in getting the change we will also need more funding to go statewide. That is in the works too! Keep your fingers crossed.