Market Analysis 2026
The State of Independent Practice
Physician ownership continues to face consolidation pressure, but autonomy, practice design, economics, and emerging ownership models are keeping independent practice strategically relevant.
The Consolidation Trend
From 60% independent (2012) to 42.2% (2024), based on AMA benchmark survey data. The rate of decline has slowed in recent years, though the data does not show a reversal of the underlying trend.
2012
60% of physicians in independent practice
Baseline
2024
42.2% of physicians in independent practice
Most recent AMA data
2026
New ownership and employment models expanding
DPC and physician-led groups growing
What This Means for Your Practice
Questions Owners Ask About Staying Independent
The four questions that come up most often when a physician owner is building a practice strong enough to remain independent.
How do I stay independent as a medical practice?
Independence holds when overhead, payer contracts, access, leadership, and succession are all being managed on a cadence rather than in a crisis.
Read the seven-part checklistHow do I cut independent practice overhead without cutting staff?
Most overhead problems trace back to workflow, vendor spend, and provider utilization rather than headcount.
See where the real savings areHow do I know if my payer contracts are costing me money?
Below-market reimbursement rates can quietly cost $100,000 to $300,000+ annually. The practices that review and negotiate get paid more.
Read the contract audit guideWhy are some independent practices winning in 2026?
The consolidation curve has flattened, and owners who fixed their operating economics found independence viable without an outside partner.
See what the current data showsWhat does operational strength actually look like?
Benchmarking tells you where you stand. Execution changes the result. Strong practices build habits around margin recovery, access, and accountability.
Read the execution guideResearch Sources & Citations
AMA Policy Research Perspectives (2024)
"Physician Practice Characteristics in 2024: Private Practices Account for Less Than Half of Physicians in Most Specialties"
American Medical Association, Physician Practice Benchmark Survey, 2012-2024. Measures the share of physicians by practice ownership type over time.
View sourceU.S. Government Accountability Office (September 2025)
"Health Care Consolidation: Published Estimates of the Extent and Effects of Physician Consolidation" (GAO-25-107450)
A GAO review of published research on hospital, physician, and private equity consolidation. Found consolidation generally associated with higher prices, with less consistent findings on quality and access.
View sourceJAMA Health Forum (2022)
"Association of Private Equity Acquisition of Physician Practices With Changes in Health Care Spending and Utilization"
Singh, Song, Polsky, Bruch, and Zhu. A difference-in-differences study of dermatology, gastroenterology, and ophthalmology practices finding private equity acquisition associated with increased prices and utilization.
View sourceHealth Affairs (2025)
"Increases In Physician Professional Fees In Private Equity-Owned Gastroenterology Practices"
Singh, Song, Polsky, and Zhu. Measures changes in professional fees following private equity acquisition of gastroenterology practices.
View sourceAmerican Medical Association (February 2025)
"Want happier doctors? Restoring their practice autonomy is a must"
AMA News Wire coverage of physician autonomy trends, describing a multi-decade decline in physician control over clinical and practice decisions as more physicians move into employed settings.
View source