Private Equity: The Bad and the Ugly

Sailesh Konda; Sagar Patel; Joseph Francis

doi:10.1016/j.det.2023.04.004

Private Equity: The Bad and the Ugly

Dermatol Clin. 2023 Oct;41(4):597-610. doi: 10.1016/j.det.2023.04.004. Epub 2023 Jun 9.

Authors

Sailesh Konda¹, Sagar Patel², Joseph Francis²

Affiliations

¹ Department of Dermatology, University of Florida College of Medicine, 4037 Northwest 86th Terrace, 4th Floor, Gainesville, FL 32606, USA. Electronic address: sailesh.konda@dermatology.med.ufl.edu.
² Department of Dermatology, University of Florida College of Medicine, 4037 Northwest 86th Terrace, 4th Floor, Gainesville, FL 32606, USA.

PMID: 37718017
DOI: 10.1016/j.det.2023.04.004

Abstract

Private equity's (PE) presence has grown within dermatology over the last decade, creating a new landscape for dermatologists to navigate. Although dermatology PE-backed groups (DPEGs) claim to partner with physicians and improve health care delivery, their actions show that investment returns and profits are prioritized. The history of PE in medicine, the corporate practice of medicine, maturation of the dermatology market, monopolistic practices, overleveraging of nonphysician practitioners, dependence on debt, training under PE, and professional and lifestyle considerations are discussed. Dermatologists should be wary of DPEGs in order to protect the profession and patients.

Keywords: Corporate practice of medicine; Cost of health care; Debt dependence; Monopolistic practices; Nonphysician practitioners; Private equity; Professional and lifestyle considerations; Residency and fellowship programs.

Publication types

Review