What’s driving the surge in physician practice consolidation right now?

Independent physician practices are getting squeezed from all sides, and it’s pushing more of them toward consolidation. Rising operating costs, flat or declining reimbursements, and aggressive acquisition activity from hospitals, insurers and private equity are converging as the pandemic’s financial aftershocks linger.

That pressure is forcing many practices to rethink how they stay viable, according to John Pack, vice president of health care finance at Mitsubishi HC Capital America, who said staffing, compliance, technology and insurance costs are outpacing payments while employment ties to hospital systems continue to grow.