Why Practices Join Hospital Systems

Interviews with hospital leaders and employed physicians highlighted financial pressures, perceived care-integration benefits, and unresolved operational tensions following acquisition.

By
Kathryn Wighton
June 12, 2026
7 min

MDSpire News

At a Glance

Category	Detail
Condition
Key Mechanisms
Target Population	Physicians and patients in hospital systems, including underserved patients.
Care Setting

Key Highlights

Over 50% of active physicians worked for hospital systems as of 2024, up from 20% in 2010.
Hospital systems have acquired more than 20,000 physician practices since 2015.
Acquisitions are often initiated by physicians due to financial pressures.

Guideline-Based Recommendations

Diagnosis

Assess financial viability of independent practices.

Management

Consider physician-initiated acquisitions as a strategy.

Monitoring & Follow-up

Evaluate performance and quality of care post-acquisition.

Risks

Potential disruption of care for existing patients due to insurance coverage issues.

Patient & Prescribing Data

Acquisitions may expand access to care but require careful management of patient relationships, based on stakeholder perceptions.

Clinical Best Practices

Facilitate continuity of care through shared electronic health records.
Design compensation incentives that align with both hospital systems and physicians.