PRI Report Warns State Policies May Accelerate Healthcare Consolidation
Event summary
- Pacific Research Institute (PRI) released an issue brief on February 10, 2026, arguing that state policies tightening corporate practice of medicine laws are hurting independent physicians.
- Between 2019 and 2024, hospitals acquired 7,600 practices and 74,500 physicians, accelerating market consolidation.
- Independent physician practices are partnering with management services organizations (MSOs) to resist acquisition while maintaining clinical autonomy.
- States are expanding bans on corporate practice of medicine, including MSO partnerships, which PRI claims ironically encourages greater healthcare consolidation.
The big picture
The U.S. physician market is rapidly consolidating, with hospitals acquiring thousands of practices and physicians over the past five years. PRI's report highlights a strategic anomaly: state efforts to curb consolidation through restrictive policies may be backfiring by weakening independent physicians' competitive position. This dynamic threatens to reduce provider competition, potentially raising healthcare costs for patients.
What we're watching
- Regulatory Impact
- How state-level bans on corporate practice of medicine will affect independent physician practices' ability to compete against hospitals.
- Market Dynamics
- Whether the pace of healthcare consolidation will accelerate as independent practices face regulatory and competitive pressures.
- Policy Shifts
- How lawmakers may respond to evidence that current policies are unintentionally fostering greater market concentration.