INTRODUCTION
Private equity-backed dermatology groups (PEGs) have been a subject of much interest among the dermatology community throughout the country. Recent trends indicate a growing number of physician-owned dermatology practices being acquired by private equity firms, with a 349% growth rate from 2012 to 2018.1 It is estimated that over 10.0% of dermatology practices in the United States are owned by private equity firms.6 It is difficult to quantify the quality of patient care delivered by private equity owned practices due to lack of objective discussion and awareness. This calls for a systematic review to examine all available literature to provide dermatologists with a better understanding of how current trends have prompted private-equity owned practices to gain popularity and how leverage buyout deals are structured. This study also compares PE and non-PE owned practices and their utilization of mid-level providers, accessibility to care for new patients, and sentiments among the next generation of providers entering the workforce, namely dermatology residents. More importantly, this paper seeks to call to attention the need for increased communication and focus among dermatologists to stay informed and updated at the forefront of this shift in paradigm of patient and practice ownership.
MATERIALS AND METHODS
This systematic review was conducted according to PRISMA guidelines.4 A literature search was conducted using the bibliographical databases PubMed/MEDLINE and Web of Science in July 2021 using the following search terms: “private equity OR consolidation OR corporatization OR venture capital OR outlier practice patterns OR private equity-based group OR acquisitions) AND dermato*†according to PRISMA reporting guidelines for systematic reviews. All available studies prior to July 2021 were considered for inclusion. Given the focus of this article, the inclusion criteria were: (1) relevant studies analyzing private equity acquisitions of dermatology practices and (2) articles analyzing corporatization and consolidation of private equity-based groups. Exclusion criteria included studies written in languages other than English, articles not pertaining to both private equity and dermatology, and articles discussing only private equity or dermatology. Original investigations and opinion articles were included, as no case-control, cohort, case series, cross-sectional studies, or randomized controlled trials were available. Studies included for review were graded using the Oxford Center for Evidence-Based Medicine 2011 Levels of Evidence.7
RESULTS
A total of 22 non-duplicated article citations were reviewed in their entirety; 18 articles (Figure 1) met the inclusion/exclusion criteria. Of these articles, 8 were original investigations and 10 were opinion articles (Table 1).1
Growth of Private Equity Within the Dermatology Space
Solo and small group practices have become a target for PE groups during the past decade, with dermatology-related
Growth of Private Equity Within the Dermatology Space
Solo and small group practices have become a target for PE groups during the past decade, with dermatology-related
