The Changing Landscape for Medical Groups:
The Future of Independent Practices

There is significant opportunity for medical groups to become the epicenter for healthcare delivery in the communities they serve. A larger sized and scaled group creates strategic advantages. Opportunity is unparalleled when groups are effectively managed and operated, adequately capitalized, and optimized vis-a-vis modern facilities, clinical capabilities, reputation, and patient experience. ERDMAN facilitates an efficient and effective planning process for groups to advance their situation analysis and implement a strategy that addresses each of the above considerations.


The number of physicians who practice in independent medical groups has been on the decline for the past two decades. Last year, for the first time, less than 50 percent of physicians (47.1 percent) had an ownership stake in their own practices—6 percent fewer than in 2012. Per the American Medical Association, almost one third, 32.8 percent, were employed by practices with either partial or full hospital ownership. The majority were employed in many specialties, like emergency medicine, primary care, and others.
At the same time, practices are getting bigger. Between 1983 and 2014, the percentage of physicians practicing alone fell from 41 percent to 17 percent while the percentage in practices with 25 or more doctors grew fourfold (5 percent to 20 percent).