Acquisitions of dermatology practices are surging in 2017. Through mid-November, we’ve counted 37 transactions for these physician practices, up nearly 46% compared with all of 2016 (26 announced transactions), according to our Deal Search Online database. As we’ve noted before, private equity play a significant role in the increased deal count.
Epiphany Dermatology, a portfolio company of CI Capital Partners, has been the busiest acquirer this year, with eight transactions concentrated in Arizona, New Mexico, Oklahoma and Texas. All had three or fewer physicians, and none of the deals disclosed prices.
Two privately held companies have announced five transactions apiece in 2017. Florida-based Advanced Dermatology and Cosmetic Surgery Inc., a portfolio company of Harvest Partners LP, has spread a wide net, making acquisitions in Arizona, Colorado, Michigan and Rhode Island. Another Florida-based company, Riverchase Dermatology and Cosmetic Surgery, has concentrated its five acquisitions in the state, picking up three solo practices, one with two physicians, and another with five. Riverchase is a portfolio company of GTCR.
The latest derm deals were announced by U.S. Dermatology Partners, based in Dallas, Texas. The company, a portfolio company of ABRY Partners, is a physician services and management organization providing practice management services to 130 board-certified dermatologists in 69 locations in Texas, Kansas, Missouri, Arizona, Louisiana and Maryland.
In October, U.S. Dermatology acquired two dermatology practices in Bee Cave, Texas: Medical Center Dermatology and Lakeway Dermatology, with a combined total of four physicians. In mid-November, it announced another deal for Medical Dermatology Specialists, a two-doctor practice in Phoenix, Arizona.