DermOne
Dermatology practice management company supporting skin care specialists with business operations and growth.
PE-OWNED
Acquired by Sentinel Capital Partners2020-06-01
What Made It Great
Dermatologist-focused platform maintaining clinical independence while scaling practice operations
What PE Will Likely Do
Reduction in nursing staff and more reliance on lower-skilled medical assistants to perform procedures, leading to lower-quality skin care services and longer wait times
Sale-leaseback transactions of DermOne's dermatology clinic properties, extracting equity for investors while increasing occupancy costs and potentially forcing clinic relocations
Aggressive billing practices to code for higher-reimbursement procedures and diagnoses, leading to inflated patient costs and potential fraud investigations
Elimination of unprofitable but essential dermatology services like specialized treatments for rare skin conditions or pediatric care, reducing access for vulnerable patient populations
Expected Timeline
“0 to 6 months months”
Announcement of 'operational improvements', changes in clinic leadership, and promises of 'enhanced efficiencies'
“6 to 12 months months”
Staffing reductions begin, with fewer experienced nurses and more reliance on lower-paid medical assistants
“12 to 24 months months”
Patients notice longer wait times, less personalized care, and increased out-of-pocket costs due to billing changes
“24 to 36 months months”
Reports of clinic closures in underserved areas, quality issues leading to regulatory scrutiny, and potential lawsuits over fraudulent billing practices
“36+ months months”
Potential bankruptcy, fire sale to another operator, or significant consolidation of the DermOne platform
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor any changes in the quality of care, staffing levels, and out-of-pocket costs at your DermOne dermatology clinic
Be wary of any billing irregularities or unexpected charges, and promptly report any concerns to your insurance provider and regulatory authorities
Consider seeking care from independent dermatologists or alternative providers if the quality of care at DermOne clinics significantly declines
Alternatives
Community-focused healthcare
Integrated managed care consortium