Dermatology Recruitment in the Age of Private Equity

Private equity (PE) has become a defining force in dermatology over the past decade. From the early 2010s, when there was only one known PE investor in dermatology, to the hundreds of acquisitions completed in recent years, the landscape has shifted dramatically. As CEO of myDermRecruiter, I have had the privilege of working with both PE-backed and independent practices nationwide. Our vantage point is unique—we see what works, where challenges arise, and how recruitment strategies adapt to market realities.

This is not a story of one model being “better” than the other. Instead, it is a look at how each operates, what that means for recruiting top dermatology talent, and what both can learn from one another.

The Current State of PE in Dermatology

According to the American Academy of Dermatology, PE investment in the specialty accelerated rapidly over the past decade—rising from 5 acquisitions in 2012 to 59 in 2017, with 34 more by May 2018, ultimately encompassing 184 practices acquired by 17 firms between 2012 and 2018.¹

Research from Weill Cornell Medicine found that after acquisition, dermatology practices experienced 4.7% to 17% higher patient volume per dermatologist and 3% to 5% higher pricing for routine visits.²

While overall health care PE deal volume slowed in 2023, dermatology remained a resilient sector, with nearly 85 acquisitions that year.³ Today, acquisition strategies are more selective, with heightened scrutiny on long-term financial sustainability, operational efficiency, and—critically—clinician recruitment and retention.

How Recruitment Differs by Ownership Model

PE-Backed Groups: Our work with PE-backed organizations often involves fast-moving recruitment cycles. These groups typically have dedicated in-house recruitment teams, centralized decision-making, and the capital to make competitive offers quickly. They may leverage signing bonuses, relocation packages, or productivity-based incentives that align with larger-scale business objectives.

Independent Practices: Independent groups often take a more deliberate approach to hiring, focusing heavily on cultural fit, autonomy, and long-term provider relationships. While they may offer lower guaranteed salaries compared with large PE-backed groups, they often provide a less pressured environment and greater scheduling flexibility—benefits that resonate strongly with certain candidates.

Both models succeed when they play to their strengths. The key is recognizing that what attracts one clinician may not attract another and tailoring the pitch accordingly.

Best Practices That Transcend Ownership Models

We have found that ownership structure matters far less than process when it comes to securing top talent. The most successful practices—PE-backed or independent—share certain traits:

Have a uniform, preplanned recruitment process to create consistency and minimize delays.

Involve decision-makers early so offers can be approved without bottlenecks.

Prepare offer letters and contracts in advance to reduce turnaround time.

Communicate hiring decisions within 48 hours of the candidate’s final interview.

Deliver formal offers in days, not weeks, to maintain momentum and keep candidates engaged.

Looking Ahead

PE will remain an important part of dermatology’s future, but so will strong independent practices. The competition for talent is intense in both arenas. Regardless of ownership model, what unites the winners is their ability to move quickly, present a compelling value proposition, and align their offers with what matters most to candidates. n

1. American Academy of Dermatology. Dermatology practice acquisitions by private equity firms. AAD.org. Accessed August 18, 2025. https://www.aad.org/member/practice/practice-tools/business/private-equity

2. Patel D, Sachs TE, Singh P, et al. Trends in dermatology practice acquisition by private equity firms and impact on health care delivery. JAMA Dermatol. 2020;156(10):985-992. doi:10.1001/jamadermatol.2020.2341

3. Physician Growth Partners. 2023 dermatology M&A report. Published January 2024. Accessed August 18, 2025. https://www.physiciangrowthpartners.com

Michelle Sullentrup

• CEO, myDermRecruiter