Private equity acquisitions of physician practices are associated with increased healthcare spending and utilization, according to research published in JAMA Network Sept. 2.
Researchers from Baltimore-based Johns Hopkins University and Portland-based Oregon Health and Science University analyzed claims data from 578 private-equity-acquired dermatology, gastroenterology and ophthalmology physician practices and 2,874 similar independent practices.
The researchers found the private-equity-backed physician practices had an average increase of $71 charged per claim and $23 in the allowed amount per claim.
Additionally, the volume of encounters increased by 16.3 percent, and the number of new patients increased by 37.9 percent.