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Healthcare Insights

Top 10 physician groups in the news for mergers and acquisitions

Healthcare facility mergers and acquisitions (M&A) continue to consolidate health systems and physician groups, especially as care continues to shift away from hospital settings.

While provider organizations work to increase market share and integrate services or supply chains, patients may feel more restricted in their choice of care providers.

What segment is seeing the most healthcare M&A activity?

Between January 2018 and September 2023, Definitive Healthcare recorded more than 2,500 merger and acquisition news stories. Over 1,400 stories were on health system and hospital M&A news and another 429 stories covered long-term care facilities. In the same timeframe, there were 398 physician group M&A news stories tracked.

Using Definitive Healthcare’s PhysicianGroupView product, we created a list of the top ten physician groups with the most merger and acquisition news stories tracked by Definitive Healthcare between January 2018 and September 2023.

Top physician group mergers and acquisitions by news activity

RankOrganization nameNumber of M&A news storiesExplore dataset
1Schweiger Dermatology Group12Explore
2Village Medical8Explore
3Palm Medical Centers7Explore
5Forum Health6Explore
6One Medical Group5Explore
7Althetico Physical Therapy5Explore
8Pinnacle Dermatology5Explore
9CORA Physical Therapy5Explore

Fig. 1 Data from the Definitive Healthcare’s PhysicianGroupView product. News and intelligence data is proprietary and updated daily. Data accessed September 2023.

Which physician groups have the most news stories on M&A?

Schweiger Dermatology Group tops the list with 12 merger and acquisition news stories. Once only a single practice in Manhattan, Schweiger Dermatology Group has grown with multiple acquisitions to over 90 offices across New York, New Jersey, Pennsylvania, Connecticut, and Florida. The group has been rapidly expanding since its founding in 2010 and has been included on Inc. Magazine’s list of the 5,000 fastest-growing private companies in America for the last six consecutive years.

Coming in second place with eight merger and acquisition news stories is Village Medical, based out of Chicago, Illinois. Village Medical is majority-owned by Walgreens, one of the largest pharmacy chains in the U.S. Walgreens has made a significant investment in expanding its clinical footprint with numerous large-scale acquisitions in recent years. Notably, Village Medical spent nearly $9 billion in 2022 to acquire medical practice Summit Health.

Rounding out the top three is Palm Medical Centers with seven merger and acquisition news stories. Despite only being 10 years old, this group has undergone an expansion throughout central and southern Florida, with 31 facilities now open across the state. Most recently, Palm Medical Centers acquired Valley Medical Centers in April 2023, which added four new facilities to their provider network.

Why do healthcare providers acquire other providers?

The goal for many providers when acquiring or merging with another is to expand their service offerings, broaden their network, and increase access to specialists. An acquisition can also be a vital financial tool that can help providers keep struggling facilities open and avoid bankruptcy.

But while mergers and acquisitions can be very beneficial to provider organizations, the consolidation of these large-scale companies can sometimes end up creating a lack of choice for patients. Research consistently shows that provider acquisitions result in worse outcomes for patients. This is because lack of competition reduces incentives to improve the quality of care.

What are the current trends for mergers and acquisitions in healthcare?

The healthcare industry is constantly evolving. Because of this, it is important for providers to understand the current trends with M&A so they can remain ahead of the curve. The recent shift towards value-based care has increased pressure on healthcare providers to become more efficient and cost-effective. As a result, many have turned to merger and acquisition activity to achieve these goals.

As the healthcare industry finally starts to return to pre-COVID financials, many of the hardest-hit organizations are starting to consolidate with larger ones in what are known as “mega-mergers.” These mergers are becoming more and more frequent, indicating that the healthcare industry’s pandemic recovery is underway.

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Healthcare Insights are developed with healthcare commercial intelligence from the Definitive Healthcare platform. Want even more insights? Start a free trial now and get access to the latest healthcare commercial intelligence on hospitals, physicians, and other healthcare providers.