Large corporations are buying primary care physicians’ practices in droves. CVS bought Oak Street, while Amazon bought One Medical. Primary care is rather mundane as physicians’ practices go. So why are hospitals, insurers and pharmacy chains scooping up primary care practices?
The appeal is simple: Despite their lowly status, primary care doctors oversee vast numbers of patients, who bring business and profits to a hospital system, a health insurer or a pharmacy outfit eyeing expansion.
And there’s an added lure: The growing privatization of Medicare, the federal health insurance program for older Americans, means that more than half its 60 million beneficiaries have signed up for policies with private insurers under the Medicare Advantage program. The federal government is now paying those insurers $400 billion a year.