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American Focus > Blog > Health and Wellness > As Trump Cuts Healthcare, Private Equity Gains Hold At Doctor’s Office
Health and Wellness

As Trump Cuts Healthcare, Private Equity Gains Hold At Doctor’s Office

Last updated: June 1, 2025 9:23 am
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As Trump Cuts Healthcare, Private Equity Gains Hold At Doctor’s Office
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The landscape of private medical practices in the United States is rapidly changing, according to a recent report by the American Medical Association (AMA). The AMA found that only 42.2% of physicians are currently working in doctor-owned private practices, a significant decline from over a decade ago when three in five doctors were in private practice.

This shift is primarily attributed to stagnant or decreasing payments from health insurance companies and government programs like Medicare and Medicaid. The AMA also points to the increasing financial strain, regulatory requirements, and administrative burdens as significant factors driving physicians to sell their practices to hospitals, health systems, and private equity firms.

Dr. Bruce A. Scott, President of the AMA, expressed concern over the unraveling of doctor-owned practices, citing the need for payment updates to ensure the sustainability of private practices and continued access to care for patients. However, with little appetite in Congress to boost payments to physicians, the future of private practices remains uncertain.

As Republicans in Congress and the Trump administration push for further cuts to federal health insurance programs, including Medicaid and Medicare, the pressure on private practices is only expected to increase. A recent analysis by the Robert Wood Johnson Foundation estimates that physicians and other healthcare providers could lose over $770 billion in revenue over the next decade due to millions of Americans losing health coverage.

Meanwhile, the AMA report reveals that more physicians are opting to work for hospitals or entities owned by private equity firms, regardless of their medical specialty. Hospital-owned practices now account for over one-third of physicians, with 12% directly employed by hospitals, a significant increase from 2012. Additionally, the share of physicians working in private equity-owned practices has also seen a steady rise.

See also  Donald Trump and Narendra Modi discuss oil and weapons deal to boost US-India trade

In conclusion, the shift away from doctor-owned private practices towards hospital-owned and private equity-owned entities is a trend that is reshaping the healthcare landscape in the United States. As policymakers continue to explore ways to reduce healthcare costs, the future of independent physician practices remains uncertain.

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