How Private Equity Is Buying Up Dermatology Practices

Episode notes

Lucas and Luna examine the rapid consolidation of dermatology practices by private equity firms. They focus on the specific case of U.S. Dermatology Partners, which has merged over 80 clinics into a single platform since 2020. The hosts break down the economics: why dermatology - with its high volume of elective procedures, favorable reimbursement mix, and recurring patient visits for skin checks - has become a prime target for roll-ups. They discuss the typical acquisition structure, where PE firms buy a platform practice and then add smaller clinics at 4 - 6 times EBITDA, levering up to boost returns. Luna questions whether the model will hold as interest rates stay elevated, and Lucas points to the shift toward value-based care and teledermatology as potential disruptors. The episode also touches on the tension between clinical autonomy and operational standardization, and what this trend means for patients searching for a dermatologist in 2026.

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