Independent physician practices are facing mounting financial strain as operating costs rise faster than reimbursements, driving many toward consolidation with hospitals, insurers, or private equity firms. Lingering pandemic-related revenue drops, combined with increasing expenses tied to staffing, compliance, technology, and malpractice coverage, are further tightening cash flow across midsize practices.
These pressures are reshaping how practices approach growth and financing. Traditional lenders are placing greater emphasis on predictable cash flow, EBITDA margins, accounts receivable timelines, and payer mix—factors that can significantly influence access to capital. In this environment, practices with inconsistent revenue cycles or heavy dependence on government payers may find expansion increasingly difficult without restructuring operations or improving financial performance.