The way that dermatologists practice is ever evolving. Ownership trends, changes in reimbursement and technological developments all make a dermatologist’s day-to-day work much different than years ago. With many shifts occurring as of late, here’s what ClubDerm’s Advisors & Contributors say are the most notable developments for the coming year.
Increasing Consolidation
Coming in at the top of the list this year is increasing consolidation in practice ownership, a change that Ron Lebow, Esq., founder of Lebow Law, P.C., says is “a driving factor in future trends.” However, Lebow has several concerns about the impacts of consolidated ownership, including a potential reduction in the quality of patient care through the use of physician extenders as well as limits to employee mobility.
“It is likely that consolidation by private equity will be subject to more scrutiny, and non-competes will increasingly be circumscribed at the legislative level,” Lebow said. “Employees are not truly getting compensated in exchange for agreeing to restrictive covenants, and mobility is the only means to negotiate better pay. Employers are obviously concerned with the ability to protect their goodwill if someone leaves, and having a non-compete increases practice value in the event of a sale. However, the employees who create the goodwill do not get to participate in the sale, and patient choice and access are of paramount concern. Further, aside from patient flow, there is no real knowledge or intellectual property worth protecting in this field, unlike in the tech sector where trade secrets are exposed.”
Suneel Chilukuri, MD, FAAD, believes there is still a need for independent dermatology practices despite the consolidation shift.
“There are better opportunities for private practices, knowing that we have better relationships with our patients. No matter how many standard operating procedures are in place, with a private equity group or large medical group there seems to be a disconnect with the patient-practitioner relationship. When patients trust the physician or health care practitioner, the journey to success is more evident.”
Developing Technology
Lilia Correa, MD, says changes in technology will have a big impact on practice management this year.
“First, we will have potential integration of AI into electronic medical records that will allow in a (not so far) future to write a note only by listening to the medical visit. This integration will also allow data analytics that may empower dermatologists to optimize workflows and decide wisely on how they would like to practice. In addition, we will have new and advanced imaging technologies that were just approved by the FDA: electrical impedance spectroscopy (Nevisense), elastic scattering spectroscopy coupled with AI (DermaSensor) and a multiphoton imaging laser (Enspectra), which will allow more accuracy and better assessment of suspicious lesions, optimizing the dermatologist visit.”
Setting Financial Goals
Toni Sikkema, MHA, founder and CEO of Solutions Maven Consulting, says increasing practice costs should motivate practice owners to look at their finances.
“I am looking forward to seeing practices take a deep dive into their finances and setting goals to operate more efficiently this year. As healthcare costs continue to rise, it’s important to know your numbers and where your practice is compared to your competitors. The financials speak volumes on how well your practice is operating.”
Enhancing Advocacy
Jeremy Brauer, MD, says the shifts he sees necessitate greater advocacy.
“I hope this year that our voice is heard on the national/federal level as it relates to declining insurance reimbursements coupled with increased operational costs, scope of practice issues and private equity’s involvement in medicine.”
Dr. Brauer is grateful for those who tirelessly advocate on behalf of dermatologists.
Focusing on Your Team
Dr. Brauer points out that practice management changes also happen within the practice team.“I hope for another year of success and continued identification of synergies and efficiencies that benefit the practice while also further enhancing the patient experience. I’m most excited about our expanding team, who continue to have an enormous impact not just on our day-to-day operations, but also the direction and growth of the practice as a whole.”
With many shifts occurring simultaneously, the day-to-day business of dermatology will continue to change. Dermatologists who want to be successful will need to advocate for their practices and their patients, and be open to new developments, especially in technology, that can increase practice efficiency and improve patient care.
