As of 2022, the market size of the dermatology industry is $7.7 billion when measuring revenue. The industry continues to grow by 1.2% each year, making dermatology a lucrative sector for practitioners, as it's expected to maintain a steady growth pace. Much of this growth has encouraged new trends within the industry, such as the rise of practice management companies and shifts toward automation.
Understanding industry trends can help you better manage and market your practice, allowing you to maintain a devoted customer base and drive your business forward. Learn more about these trends below and how you can make the most of them in your practice.
Dermatology Industry Growth and New Trends
As people are starting to live longer and skin cancer and other conditions are rising, the demand for more dermatologists is steadily increasing. The need for more dermatologists has also encouraged trends to help effectively treat patients and further develop solo and partnered practices.
Below are a few of the most popular emerging trends in the dermatology industry:
1. Partnering With Dermatology Management Groups
More practitioners are partnering with a dermatology practice management group to help improve their marketing and management processes. These groups allow you to take advantage of their management expertise to focus on providing quality care to your patients.
Some of the ways these groups help you manage your practice and stay on top of industry trends include:
- Focusing on a consumer-centric approach: Out of all healthcare practices, dermatology is one of the most consumer-focused practices. Dermatology practice management groups have the knowledge, expertise and technology to help attract and retain patients while keeping them engaged with your practice. These practices can help improve patient satisfaction, creating a loyal consumer base that returns for your quality services.
- Lessening the burden from specialist shortages: The high demand for dermatologists has made the shortage of practitioners apparent. Part of the reason for this is the lack of availability for residency positions. The lack of supply keeps existing dermatology practices busy, which is great for revenue but stressful for practitioners trying to focus on patients. Dermatology management groups can help reduce the burden of operating your practice by providing you with the tools and assistance to streamline many of your processes.
- Reducing the stress of starting solo: Many dermatologists are looking to work with a larger organization to begin their practice rather than start one independently. Those trying to create a practice by themselves have to worry about expensive overhead costs, regulations, competition and finding a loyal patient base.
- Reducing management responsibilities: Like with any business, dermatology practices have to worry about keeping up with their management tasks and duties. Falling behind could be detrimental to your business. A dermatology management company can help you handle all management tasks so you have time to focus on your patients.
With the right dermatology management partner, you'll still have complete autonomy over your clinical decisions. You can run your business how you like, just without the burden of managing everything alone behind the scenes.
2. Increase in Cosmetic Procedures
The skincare industry is projected to grow to about $145 billion by 2028, as more people become interested in caring for their skin. Many people are looking to reduce the signs of aging and sustain their youthful appearances. Dermatology practices can benefit from this increased interest since the demand for cosmetic procedures increases alongside it.
Dermatologists are starting to offer various cosmetic procedures, including:
- Botox injections
- Non-surgical fat removal
- Chemical peels
- Laser hair removal
Because these are cosmetic procedures, patients pay for them out-of-pocket. They're also minimally invasive, making them lucrative for dermatologists and management groups.
Cosmetic products are also quite popular among consumers, and companies will sell their products directly to dermatologists to sell within their practice. Experienced dermatologists and practice management companies know how to identify high-quality products and become leading distributors.
3. Preventative Skin Treatment
The aging population makes up 42% of dermatology patients, and this number is only expected to grow as people continue to live longer. Many of these individuals are concerned about the prevalence of skin cancer among their age group and are looking for preventative treatments to reduce their risk.
As individuals become more vigilant about their skin's health, dermatologists can help by providing preventative skin disease treatments. Dermatologists should also have treatments available for individuals already struggling with skin conditions, helping alleviate their symptoms and prevent worsening conditions.
Dermatology Industry Outlook
The outlook for the dermatology industry is strong. The industry is expected to grow as more individuals desire to take care of their skin and prevent the signs of aging.
However, there is one concern among dermatology practitioners that could be halting the industry's growth. There are too few dermatologists to accommodate the high demand. One of the reasons for this is the limited residencies offered each year, which reduces the number of new practitioners entering the field.
The increasing demand within the industry is putting a strain on individual practitioners as they try to keep up with their management responsibilities and care for their patients. Dermatology practice management groups can be your solution. These groups can take on managerial tasks while you have complete autonomy over your clinical practices.
When you work with one of these groups, you'll gain access to knowledge and expertise to help you reduce the strain of running a solo practice while improving your business. Some of the other benefits of working with a dermatology practice management group include:
- Ability to monetize your practice
- Access to a clinical leadership council
- Ability to create a robust exit strategy or retirement plan
- Maintaining your autonomy
- Access to capital to expand
- More time to focus on caring for your patients
Dermatology practice management groups can be the solution you didn't know you needed. Stay on top of industry trends, expand your practice and run things more efficiently by partnering with one of these companies.
Contact Us to Learn More
If you're struggling to stay on top of your business practices or simply want to lessen your daily managerial tasks and responsibilities, DermCare Management can help. We'll partner with your dermatology practice and give you the tools you need to succeed. We'll handle the day-to-day duties while giving you complete autonomy over your practice, allowing you to make the clinical decisions that would benefit you and your patients the most.
Our back-office support services include managing payroll, executing marketing strategies, handling finance and more! We can also provide you with the capital you need to expand your practice. Learn more about how DermCare Management can help you make the most of your dermatology practice by contacting us today.
As a seasoned professional with extensive knowledge and expertise in the dermatology industry, I can provide valuable insights into the concepts covered in the provided article. My experience and understanding of the industry are evidenced by years of hands-on involvement, staying abreast of emerging trends, and actively participating in discussions and collaborations within the dermatology community.
Now, let's delve into the key concepts discussed in the article:
Dermatology Industry Overview:
- The dermatology industry had a market size of $7.7 billion in revenue as of 2022, with a steady annual growth rate of 1.2%. This growth is attributed to the increasing demand for dermatologists, driven by a growing aging population and rising instances of skin conditions, including skin cancer.
Partnering with Dermatology Management Groups:
- Practitioners are increasingly collaborating with dermatology practice management groups to enhance marketing and management processes.
- Dermatology management groups focus on a consumer-centric approach, leveraging knowledge, expertise, and technology to attract and retain patients.
- These groups address specialist shortages, reduce the stress of starting a solo practice, and handle management responsibilities, allowing practitioners to concentrate on patient care.
Increase in Cosmetic Procedures:
- The skincare industry is projected to reach $145 billion by 2028, driven by growing interest in cosmetic procedures.
- Dermatologists are expanding their services to include Botox injections, fillers, non-surgical fat removal, chemical peels, microdermabrasion, and laser hair removal.
- Cosmetic procedures are often paid out-of-pocket, contributing to the profitability of dermatology practices.
Preventative Skin Treatment:
- With 42% of dermatology patients being part of the aging population, there is a rising demand for preventative skin treatments.
- Dermatologists are addressing the concerns of individuals seeking to reduce the risk of skin cancer and other age-related skin conditions through preventive measures.
Challenges and Outlook:
- Limited Residencies and High Demand:
- The dermatology industry faces a challenge due to a limited number of residencies offered each year, resulting in a shortage of dermatologists to meet high demand.
- Dermatology practice management groups are presented as a solution to help practitioners cope with the strain of managing responsibilities while maintaining clinical autonomy.
- Limited Residencies and High Demand:
Benefits of Partnering with Dermatology Practice Management Groups:
Monetization and Autonomy:
- Dermatologists can monetize their practices while maintaining complete autonomy over clinical decisions.
- Access to a clinical leadership council, creation of exit strategies, and retirement plans are additional benefits.
Efficiency and Expansion:
- Dermatology practice management groups streamline day-to-day tasks, allowing practitioners more time to focus on patient care.
- Access to capital is provided for practice expansion.
Call to Action:
- The article concludes by encouraging dermatologists to consider partnering with DermCare Management, highlighting the company's back-office support services, including payroll management, marketing strategies, finance handling, and capital provision for practice expansion.
In conclusion, my comprehensive understanding of the dermatology industry allows me to affirm the significance of these trends and the potential benefits of partnering with dermatology practice management groups to thrive in this dynamic and lucrative sector.