CHARLOTTE, N.C., October 26th, 2026 — TUSK Practice Sales, a sell-side healthcare M&A advisory firm, released its Q4 2026 Dermatology Market Report. The report finds that more than 35 groups are actively acquiring dermatology practices even as higher borrowing costs, a pending Medicare fee schedule decision, and new state laws change how deals are built. The report is written for dermatology practice owners in the United States who want to understand the MSO and private equity landscape, the lending environment, and the regulatory shifts that will shape their options.

Key Findings

The buyer pool is deep. More than 35 groups are actively acquiring dermatology practices in TUSK’s marketplace. LevinPro counts 25 reported dermatology transactions through August 26, on pace to pass the 32 recorded in all of 2025, even as physician practice management private equity deals are on pace for about half of last year’s total.
Platform maturity is creating new options. PitchBook counts at least 20 private equity-backed dermatology companies held seven or more years by their current investors, which points to recapitalizations and new capital entering the buyer pool in 2027. The August combination of U.S. Dermatology Partners and DermCare Management, now operating in 12 states, is one example.
Financing is costlier. The Federal Reserve raised its target range to 3.75% to 4.00% on September 16, and the 10-year Treasury yield stood at 5.24% on October 9. Higher borrowing costs often show up in the structure of an offer, with more value coming through rollover equity or earn-outs, and they limit associates who might buy a practice: 70% of 2025 medical school graduates carried education debt, with a median of $215,000, according to the AAMC.
Medicare reimbursement is under review. CMS’s proposed 2027 physician fee schedule estimates a 9% payment decrease for dermatology overall, and an analysis commissioned by the American Academy of Dermatology Association estimates that the proposed same-day visit billing change alone would reduce dermatology Part B payments by 6.1%. A final rule is expected around November 1.
State oversight is expanding. Oregon and California laws that took effect in 2026 limit how much control a management company can have over a physician-owned practice, and additional states now require advance notice of transactions.

“Dermatology remains one of the better-supported specialties for a transition, but the way deals get done is changing. Rates, reimbursement and state oversight now shape the structure and timing of an offer as much as the price. Owners who understand that going in are in a much stronger position at the table,” shared Kevin Cumbus, President and Founder of TUSK Practice Sales.

Taken together, the findings describe a market where deals are still getting done and every dermatology practice owner has transition options, but where the path to each one is shifting.

Ryan Mingus, Managing Director and Partner at TUSK Practice Sales added, “We wrote this report so owners can see the market the way buyers see it. With more than 35 groups actively acquiring, competitive tension is real. What has changed is that preparation, structure and timing matter more than they did a year ago, and the owners who do best are the ones who plan early and know how each buyer builds a deal.”

Access the Report

The Q4 2026 Dermatology Market Report is available to download here: Download the Report

About TUSK Practice Sales

TUSK Practice Sales (“TUSK”) provides M&A Advisory services in the healthcare industry. TUSK has completed over $1.5B of transactions across all specialties. With an in-depth understanding of the marketplace and access to 100’s of buyers nationwide, we help our clients confidently pursue M&A transactions that maximize their long-term value. With our significant collective experience of over 125+ years of practice transactions, we offer our clients solutions that help them achieve their strategic and financial objectives. For more information, visit www.TuskPracticeSales.com.