Rising Health Care Consolidation: What It Means for Your Medicare Rights

A recent report by the Government Accountability Office (GAO) highlights a growing trend in healthcare: doctor consolidations. The study, requested by Congress, reviewed data from January 2021 to July 2025 and engaged with various industry stakeholders.

Doctors are increasingly teaming up with hospitals, private equity firms, and health insurers. In 2024, around 47% of physicians were linked to hospitals, a jump from less than 30% in 2012. Private equity’s influence is also rising; they accounted for 65% of all physician practice deals from 2019 to 2023. Currently, about 7% of physician practices are owned by these firms, a slight increase from 5% in 2022.

This shift toward consolidation raises important questions about healthcare costs and quality. The GAO found that merging with hospitals often leads to higher Medicare spending. For example, when certain medical services move to hospital settings, costs can rise significantly. One study revealed a 5% increase in spending per Medicare patient for selected elective surgeries from 2010 to 2015. Another study found that spending for specific imaging tests surged by $40 million due to these mergers.

Mergers may also impact healthcare quality. Some studies suggest that after consolidations, there can be an uptick in complications for patients, such as those undergoing colonoscopies. Stakeholders express concerns that too many patients may lead to rushed appointments, potentially compromising the care quality.

Experts have voiced the urgency for reform in the healthcare system. While consolidations can offer some benefits, they need oversight to prevent negative outcomes. Recommendations include increasing transparency around ownership and ensuring fairer pricing practices. Long-term strategies to discourage anti-competitive behavior are also crucial.

In summary, as the landscape of healthcare changes, it’s vital to balance the benefits of consolidation with the need for quality care and fair costs, ensuring that patients remain the priority. For more detailed findings, you can read the full report here.

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