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S. Konda, Joseph Francis, K. Motaparthi, J. Grant-Kels (2019)
Future considerations for clinical dermatology in the setting of 21st century American policy reform: Corporatization and the rise of private equity in dermatology.Journal of the American Academy of Dermatology, 81 1
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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
JAMA Dermatology – American Medical Association
Published: Sep 24, 2019
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