Primary Care: The New Practice Area Darling?

Commentary by Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

Primary care, one of the least-lucrative practice areas in medicine, dominated investments in 2021, with U.S. companies investing $16 billion into the space. Private equity, strategic acquisitions and new primary care companies made up the dominant investors.

While primary care revenue plunged 7% in 2020, investors were increasingly attracted to primary care’s potential to care for patients at a low cost. Hospitals, which often seek to add primary care services for future profitable referrals to specialists, will now compete with private and alternative investors who share this same goal.

The effects can be seen by looking at physician employers. At the start of 2021, about 70% of physicians were employed by larger organizations, up from approximately 62% in 2019. As the consumerization of healthcare remains a top priority in serving patients, larger corporations such Walmart Health and Amazon Care are expected to expand their offerings, which include online, in-home, and retail clinic services.


In 2022 and beyond, we predict continued private and alternative investors will enter the healthcare space with a variety of creative opportunities for healthcare owners and providers alike.

Read full article here.

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