Future considerations for clinical dermatology in the setting of 21st century American policy reform: corporatization and the rise of private equity in dermatology

Publication date: Available online 5 October 2018

Source: Journal of the American Academy of Dermatology

Author(s): Sailesh Konda, Joseph Francis, Kiran Motaparthi, Jane M. Grant-Kels, Group for Research of Corporatization and Private Equity in Dermatology

Abstract

Within the last two decades, for-profit financial groups have become increasingly involved in health care. Outlier dermatology practices with high volumes of well-reimbursed procedures are attractive to consolidation backed by private equity. With fewer choices for independent or group private practice, junior dermatologists are increasingly seeking employment without ownership in private equity-backed corporate groups, whose primary fiscal responsibility lies with investors. Medicare's response to corporatization and consolidation has already changed the practice of dermatopathology. Dermatologists should be aware of this history, given the ability of corporations and private equity groups to shape the present and future of our field.