Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Private Equity and Dermatology—First, Do No Harm

Private Equity and Dermatology—First, Do No Harm Opinion EDITORIAL Joshua M. Sharfstein, MD; Jamar Slocum, MD Twoyearsago, one of the world’s largest retailers of chil- low for direct-to consumer marketing” and hire pathologists dren’s toys, Toys “R” Us, filed for Chapter 11 bankruptcy, clos- to form “their own dermatapathology [sic] laboratories to di- 1 5 ing more than 1000 stores across the country. Many finan- versify revenue source and increase revenues.” Reporters have cial observers trace its demise to the 2005 takeover by private documented concerning practices in dermatology offices taken equity firms. The new own- over by private equity firms, including questionable proce- ers paid themselves hand- dures performed by nonphysicians in frail patients. If physi- Related article page 1013 some fees, eliminated posi- cians object to such practices, private equity firms may ask tions, reduced employee benefits, and forced the retailer to take them to leave, either voluntarily or involuntarily, which may on billions of dollars in additional debt. When the weakened be referred to by the euphemism of “physician transition.” Pri- company was unable to mount a strong defense against on- vate equity firms apparently see as a positive that in derma- line retailers, bankruptcy soon followed. tology, “practice branding lends well to http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png JAMA Dermatology American Medical Association

Private Equity and Dermatology—First, Do No Harm

JAMA Dermatology , Volume 155 (9) – Sep 24, 2019

Loading next page...
 
/lp/american-medical-association/private-equity-and-dermatology-first-do-no-harm-aZAlXm1RQ9

References (7)

Publisher
American Medical Association
Copyright
Copyright 2019 American Medical Association. All Rights Reserved.
ISSN
2168-6068
eISSN
2168-6084
DOI
10.1001/jamadermatol.2019.1322
Publisher site
See Article on Publisher Site

Abstract

Opinion EDITORIAL Joshua M. Sharfstein, MD; Jamar Slocum, MD Twoyearsago, one of the world’s largest retailers of chil- low for direct-to consumer marketing” and hire pathologists dren’s toys, Toys “R” Us, filed for Chapter 11 bankruptcy, clos- to form “their own dermatapathology [sic] laboratories to di- 1 5 ing more than 1000 stores across the country. Many finan- versify revenue source and increase revenues.” Reporters have cial observers trace its demise to the 2005 takeover by private documented concerning practices in dermatology offices taken equity firms. The new own- over by private equity firms, including questionable proce- ers paid themselves hand- dures performed by nonphysicians in frail patients. If physi- Related article page 1013 some fees, eliminated posi- cians object to such practices, private equity firms may ask tions, reduced employee benefits, and forced the retailer to take them to leave, either voluntarily or involuntarily, which may on billions of dollars in additional debt. When the weakened be referred to by the euphemism of “physician transition.” Pri- company was unable to mount a strong defense against on- vate equity firms apparently see as a positive that in derma- line retailers, bankruptcy soon followed. tology, “practice branding lends well to

Journal

JAMA DermatologyAmerican Medical Association

Published: Sep 24, 2019

There are no references for this article.