ACP says increased oversight of private equity in health care is needed to protect patients and the physician workforce

PHILADELPHIA, May 25, 2026-Private equity investment in health care requires increased regulatory oversight and policies to better protect patients and physicians from the adverse impact of growing corporate interests, says the American College of Physicians (ACP). In a new paper, "Regulatory Framework for Private Equity and Corporatization in Health Care: A Position Paper from the American College of Physicians," published today in Annals of Internal Medicine, ACP examines the impact of private equity investment on clinical autonomy, health care costs, quality, access, equity, and innovation, and makes recommendations to help ensure that patient-centered care is protected.

In recent years, private equity investments in health care have increased substantially, growing from $41.5 billion in 2010 to $119.9 billion in 2019, with the trend expected to continue in the upcoming years. These investments have increasingly focused on primary care and multispecialty practices, driven in part by financial pressures on physician practices. Physicians have been leaving private practice due to high costs, inadequate reimbursement rates, and burnout. Instead of physicians funding and expanding their practices, investment patterns have shifted toward institutional investments by large firms that may not have expertise in health care delivery. The trend is concerning because some evidence associates private equity investment in health care with higher costs and, in certain settings, adverse effects on care delivery and patient outcomes.

"Given the increasing role that private equity plays in the health care system, we need to know more about its impact," said Jan K. Carney, MD, MPH, MACP, president, ACP. "There is a fundamental difference between the long-term nature of health care delivery goals and the need for short-term returns on private equity investments. Those competing incentives underscore the need for strong policies to ensure that patient-centered care remains the priority."

In the new paper, ACP outlines a series of recommendations to better regulate private equity investments. Policymakers should establish safeguards to ensure that physicians retain control of patient care and discourage prioritizing profits over patients. ACP calls for greater transparency in health care investments, including requiring private equity firms to disclose information on patient experiences and outcomes. There should be regulatory oversight of private equity activities to prevent practices such as inappropriate self-referrals, excessive reliance on non-physician clinicians without appropriate physician involvement, or consolidation that reduces competition. ACP recommends increased scrutiny of practices that disproportionately affect vulnerable and underserved communities. Federal officials should strengthen enforcement and impose penalties on firms that violate the False Claims Act or engage in fraud or kickbacks.

ACP also recommends enhanced oversight of private equity entities that receive funding from federal payment programs, like Medicare and Medicaid. ACP calls for further examination of the impact of private equity and consolidation in the health care sector, including research into how these investments affect enrollment, spending, clinical outcomes, and health equity in Medicare, Medicare Advantage, and other federal health programs. Finally, ACP calls for additional research into how private equity affects the physician workforce and practice composition, including whether there are circumstances in which private equity investment could help expand access in rural communities or support investment in value-based care models.

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About the American College of Physicians
The American College of Physicians is the largest medical specialty organization in the United States with members in more than 172 countries worldwide. ACP membership includes 163,000 internal medicine physicians, related subspecialists, and medical students. Internal medicine physicians are specialists who apply scientific knowledge and clinical expertise to the diagnosis, treatment, and compassionate care of adults across the spectrum from health to complex illness. Follow ACP on X, Facebook, Instagram, Threads and LinkedIn, and subscribe to our new RSS feed.

Contact: Jacquelyn Blaser, [email protected], 202-261-4572