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

J Am Acad Dermatol. 2019 Jul;81(1):287-296.e8. doi: 10.1016/j.jaad.2018.09.052. Epub 2018 Oct 5.


Within the past 2 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 their 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.

Keywords: consolidation; corporatization; dermatology; dermatopathology; outlier practice patterns; private equity; venture capital.

Publication types

  • Review

MeSH terms

  • Delivery of Health Care / methods
  • Delivery of Health Care / trends*
  • Dermatology / organization & administration*
  • Female
  • Forecasting
  • Health Care Reform
  • Health Policy
  • Humans
  • Male
  • Medicare / economics
  • Outcome Assessment, Health Care*
  • Policy Making*
  • Practice Patterns, Physicians' / economics*
  • Privatization / economics
  • Privatization / trends*
  • United States