Buyer guide
Medical Practice M&A in 2026: Who Is Buying and What They Pay
Private equity, health systems and larger groups keep buying physician practices, but 2026 has been more selective. Here is the data.
Short answer
Physician practice deals hit 521 in 2025, with private equity-backed groups behind 48% of them, according to Levin Associates. Activity slowed in 2026, with third-quarter deals down 23% from a year earlier as investors became more selective. Meanwhile 82% of physicians were employed by hospitals or corporate entities as of January 2026, and fewer than half work in physician-owned practices.
Fewer physicians own their practice
The American Medical Association reported that 42.2% of physicians worked in physician-owned private practices in 2024, down from 60.1% in 2012. Only 35.4% had an ownership stake. The Physicians Advocacy Institute and Avalere Health found that as of January 1, 2026, 82.0% of physicians were employed by hospitals or corporate entities, with 59.7% employed by hospitals.
For buyers, that means fewer independent practices are left to buy, and more competition for the good ones.
Deal volume and who is buying
Levin Associates counted 521 physician medical group transactions in 2025, up from 506 in 2024:
| Buyer type | Share of 2025 deals |
|---|---|
| Private equity-backed groups | 48% (251 deals) |
| Management services organizations | About 9% (46 deals) |
| Health systems | About 8% (44 deals) |
The most active subsectors were dental (248 deals), eye care (34), dermatology (32) and orthopedics (31).
2026: slower and more selective
Levin reported 105 physician medical group deals in the third quarter of 2026, down 23% from 137 a year earlier, with 368 deals in the first three quarters. Private equity still accounted for more than half. Levin's analyst said investors have "become more selective."
For sellers, that means well-prepared practices still attract buyers, while weaker ones face more scrutiny. For buyers, it can mean more room to negotiate.
Surgery centers stay in demand
VMG Health's 2026 Healthcare M&A Report, as reported by ASC News, put the median deal multiple for ambulatory surgery centers at 7.9x EBITDA in 2025, the highest in at least eight years. About 65% of freestanding ASCs remain independently owned. Ascension closed its $3.9 billion acquisition of AmSurg in June 2026 after agreeing with the FTC to divest seven centers. Read about how physician ASC investment works.
Regulation is catching up
States are adding rules for private equity healthcare deals. Oregon and California tightened corporate practice of medicine and notice rules for 2026, and a federal bill modeled on Oregon's law was introduced in September 2026. See MSOs and the corporate practice of medicine.
What this means for physician buyers
- You compete with platforms for larger practices, but many solo and small practices still sell physician-to-physician.
- Financing still sets your ceiling. See how practice loans work.
- Diligence matters more as rules tighten. See our due diligence checklist.
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Join the Buyer ListCommon questions
How many physician practices were acquired in 2025?
Levin Associates counted 521 physician medical group transactions in 2025, with private equity-backed groups behind 48% of them.
Is private equity still buying medical practices in 2026?
Yes, but more selectively. Levin reported third-quarter 2026 deals down 23% from a year earlier, with private equity still behind more than half.
What percentage of physicians are in private practice?
The AMA reported 42.2% in 2024, down from 60.1% in 2012.
Related reading
Sources
Figures are attributed to their source and date. Ranges are published estimates, not a valuation of any practice.
- American Medical Association, Policy Research Perspective, "Physician Practice Characteristics in 2024," June 2025. Link
- Physicians Advocacy Institute and Avalere Health, "Physician Employment Trends and Practice Acquisitions: 2018-2026," April 2026. Link
- Levin Associates, "Most Active Physician Group Buyers of 2025," January 20, 2026. Link
- Irving Levin Associates, "Physician Medical Group M&A Fell in Q3:26," October 19, 2026. Link
- ASC News, "ASC M&A Activity Continues as Health Systems, PE Widen the Dealmaking Field," May 22, 2026 (reporting VMG Health's 2026 Healthcare M&A Report). Link
- Healthcare Dive, "Ascension closes AmSurg deal following FTC scrutiny," June 5, 2026. Link