Growth of Payer-Operated Physician Practices in Medicare Primary Care, 2016-2023

The market share of payer-operated physician practices in Medicare primary care has increased notably from 0.78% in 2016 to 4.2% in 2023, with Optum holding the largest share at 2.71%. These practices deliver a higher percentage of services within Medicare Advantage (5.73%) compared to traditional Medicare (1.84%). The growth in payer ownership varies regionally, correlating strongly with Medicare Advantage penetration, and is less prevalent in areas with concentrated hospital systems and employer-sponsored insurance markets.