It's a good time to be in the business of gastroenterology. Not only do gastroenterologists enjoy one of the higher annual compensations among medical specialists, they are also driving substantial earnings for hospitals. According to the Merritt Hawkins 2019 Physician Inpatient/Outpatient Revenue Survey, gastroenterologists generated an average net revenue of $2,965,277 in 2019, more than double that reported in 2016.
With numbers like these, it's easy to see why gastroenterology finds itself where some other specialties have been in recent years, in the sights of investors hoping to ride emerging healthcare trends to further profitability.
"The healthcare environment is changing, and one of the most significant challenges is the increase in consolidation," said David A. Johnson, MD, professor of medicine and chief of gastroenterology at Eastern Virginia Medical School in Norfolk, who is a past president of the American College of Gastroenterology.
In gastroenterology, this trend is largely being driven by the entrance of private equity partners, whose presence has grown, Johnson says, especially in the past year.
Being such an in-demand specialty for investors comes with obvious opportunities, financial and otherwise. But gastroenterologists must have a clear understanding of the factors reshaping their practices or they risk entering into arrangements that do not benefit them in the ways they had anticipated.
