With the new year approaching, it’s good to know where the landscape of the U.S. healthcare system is in 2023. The influx of hedge funds purchasing hospitals left and right is changing the primary care structure. For example, the employment of physicians has increased by 19% over the last 3 years. Some argue the reasons for the upswing and the hiring of physicians. Some point to the pandemic, as the main reason for the increase due to hospitals needing more physicians during that time. Private investors and physicians who share in ownership within practices across the country could also be a primary factor in the rise of physician employment in the country.
Another trend that will likely continue is more physicians moving towards corporate entities rather than having their own practice. A 2022 Physician Advocacy study showed that 73.9 percent of physicians are currently working in corporate hospitals in this country. The study finding showed that “108,700 additional physicians became employees of hospitals or other corporate entities since January 2019, with 83,000 of that shift taking place after the pandemic began.”
With that type of increase in the last few years, it’s unlikely to slow down. This is great news for hospitals and hedge funds that have heavily invested in these corporations. With this increase, there has also been a decrease in nurses in hospitals. Studies show that there is going to be a nursing shortage between 200,000 and 450,000 by 2025. Staffing comprises about half of a hospital’s cost structure, and 33% of nurses are planning to leave their current position. Between 2017 and 2021, RN turnover increased from 17% to 26%. Somehow the healthcare system needs to change the RN turnover rate from rising over the next decade. Some experts highlight that hospitals might have the resources to gain RN employment from outside the country. RNs are vital to the operation of hospitals in this country.
“Physicians Advocacy Institute .” Physicians Advocacy Institute, Apr. 2022,