Hospitals are rapidly buying up physician practices across the U.S., and patients are paying the price.

Between 2008 and 2016, hospital ownership of private physician practices surged by 71.5% and nearly half of all physician groups were hospital-owned by 2016. Within just two years of hospital acquisition, physician service prices rose by an average of 15.1%.

This consolidation means more than three-quarters of U.S. doctors now work for health systems or corporate entities.

Independent practices are left struggling under rising overhead costs and shrinking reimbursements. While hospitals argue that acquisitions bring needed investments and improve care access—especially in rural areas—research shows prices will rise without corresponding improvements in quality.

The solution? Policies like site-neutral payment could help slow rising costs and protect competition.

Patients will face fewer choices, higher bills, and a healthcare system controlled by a handful of powerful players if change is not made. The state of how Americans receive care depends on decisions made today —and it’s a conversation Better Solutions will continue to spotlight.