A shift in the dermatology industry is subtly unfolding as consolidation impacts the industry’s traditional framework. Private equity and venture capital investments have surged, creating a ripe environment for dermatology practice owners to harvest benefits with the right preparation and approach. This transformation unfurls new horizons for those looking to explore and understand the opportunities of a shifting landscape.  

Currently, about 8% to 9% of the approximately 10,000 dermatology practices in the United States have undergone consolidation. To provide some perspective, historical data from other medical specialties, such as dentistry, have shown that valuations can increase significantly for consolidated groups when the industry reaches a 10% to 12% consolidation rate. As in dentistry, veterinary, and numerous other verticals before it, dermatology consolidation will reach a tipping point at roughly 10% and acquisition activity amongst privately owned practices will increase significantly. Many believe this tipping point will be reached by 2025, which would trigger a period of merger and acquisition activity extending for 15 to 20 years.  

Josh Swearingen has over 15 years of leadership experience in the healthcare industry, most recently serving as a director at TUSK Practice Sales, a healthcare mergers and acquisitions firm located in Charlotte, North Carolina. He is also the co-founder of Reverse Aesthetics in Columbus, Ohio. Prior to that Swearingen was director of corporate development for American Dental Partners and quarterbacked several of their largest transactions during his tenure there. He appears at multiple healthcare tradeshows across the country and has become an industry thought leader in the healthcare mergers and acquisitions space. Learn more about him and TUSK Practice Sales a tuskpracticesales.com