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Private Equity: The Bad and the Ugly
Sailesh Konda1, Sagar Patel1, Joseph Francis1
1Department of Dermatology, University of Florida College of Medicine, 4037 Northwest 86th Terrace, 4th Floor, Gainesville, FL 32606, USA.
Dermatologic Clinics
|September 17, 2023
Summary
Private equity
Area of Science:
- Medical Economics
- Dermatology Practice Management
Background:
- Private equity (PE) has significantly increased its presence in dermatology over the past decade.
- This has led to the formation of dermatology PE-backed groups (DPEGs).
Purpose of the Study:
- To analyze the impact of private equity on the dermatology profession.
- To discuss the implications for dermatologists and patient care.
Main Methods:
- Review of the history of private equity in medicine.
- Analysis of market trends, corporate practice of medicine, and financial strategies employed by DPEGs.
- Discussion of professional and lifestyle considerations.
Main Results:
- Dermatology PE-backed groups prioritize investment returns and profits over physician partnerships and healthcare delivery.
- Practices include monopolistic strategies, overleveraging, and debt dependence.
Conclusions:
- Dermatologists should exercise caution regarding dermatology PE-backed groups.
- Awareness is crucial for protecting the dermatology profession and ensuring patient welfare.
Keywords:
Corporate practice of medicineCost of health careDebt dependenceMonopolistic practicesNonphysician practitionersPrivate equityProfessional and lifestyle considerationsResidency and fellowship programsMore Related Videos
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