The number of employed physicians surpassed those operating private practices for the first time on record, and a generational shift is underway among younger generations: Only 30% of physicians under the age of 40 are self-employed.
Overall, about 47% of all physicians in the U.S. were employees of a hospital or other institution in 2018, up about 6% from 2012, according to a new benchmarking study from the AMA. The ranks of self-employed physicians fell 7% over the same time period, settling at 46% in 2018.
The rise of hospital-employed physicians has continued over recent years, with more than one-third, or 35%, of all patient care physicians working either as a direct hospital employee or as part of a hospital-owned physician practice, the study shows. That figure is up from 29% in 2012.
While the AMA cautions that the current trends may not continue "indefinitely," the share of younger physicians working as employees rather than as self-employed providers hints at a change in the business landscape that may endure. In 2018, the nearly 70% of physicians under 40 who were employees significantly outpaces the 38% of providers over 55 who worked in the same manner.
The AMA study also reveals a stark gender divide among American's physicians. About 34% of female physicians currently work as practice owners, compared to just 58% who are employees. Among their male counterparts, the numbers are reversed — 52% are practice owners, while 42% are employees.
“Transformational change continues in the delivery of health care and physicians are responding by reevaluating their practice arrangements,” said AMA President Barbara L. McAneny, M.D, in an accompanying statement.