As you grow your dermatology career, it’s important to keep in mind trends in the dermatology market. Take it from us – we have assisted thousands of dermatology practices, dermatologists and residency programs in the last 20 years, and we can tell you that the dermatology market is evolving. With developments in ownership, job creep, staffing and contracts, it’s important for dermatologists to understand the current market in order to make solid decisions for a thriving future. Here are the top five dermatology market trends of 2023:
Trend #1: Demand outpaces supply
The U.S. population is increasing each year, yet the number of practicing dermatologists is not matching that pace. As 500 dermatologists enter the market each year, 325 exit.
Demand is also increasing as the population ages and people are more interested in minimally invasive cosmetic procedures.
Trend #2: Income is growing
The average income for a dermatologist went up last year with a reported income of $443,000. Dermatologists in private practice may make more than in academia but income is contingent on the number of patients seen per day. Compensation is also highly dependent on the amount of support staff and the scope of practice in the state. Practices are more profitable in states that limit the ability of midlevel providers and other non-physicians to perform cosmetic procedures.
Trend #3: Job openings remain unfilled
There are currently 500 to 600 job openings in dermatology with many opportunities available in rural areas as dermatologists often settle in dense urban areas. Open clinician positions are now more commonly filled with NPs and PAs instead of MDs and DOs. In addition to a shortage of dermatologists, there is also a shortage of support staff, including nurses and medical assistants. If you find good team members, take care of them well!
Trend #4: Ownership affects job opportunities
Smaller practices are more commonly selling to private equity groups because the small practices are having a harder time recruiting dermatologists. Initial salaries and benefits that smaller practices offer can’t compete with those of hospitals and private equity groups. Hospitals are recruiting more dermatologists, and early practice dermatologists appear to be attracted to these positions because of the security that a hospital position may provide.
Trend #5: Contracts are less favorable toward dermatologists
Contracts are becoming more standardized and less negotiable. Many of the private equity contracts are written by attorneys without experience in healthcare before their clients entered the market, so the contracts are extremely one-sided and aggressive.
One tip that we share with every job seeker: consider rural areas. When it comes to salary, quality of life and the type of practice you want, you may find it in a location other than where you originally intended to settle. Look at the saturation of dermatologists. In Manhattan, there are 26 dermatologists in a single zip code, while in Flint, Michigan, there are only two in the entire city. Look also at areas where the population is growing as there may be more people moving to the area who are in need of dermatology services. Be introspective and understand your own long-term desires. Do you want more autonomy? Do you want to supervise and be liable for mid-levels or aestheticians? Do you want to be able to guide the growth of a practice? Don’t forget to consider how state income tax affects your take home pay. It adds up when you’re making a lot of money.
