Riverside Puts Skin In Game With New Investment
Firm Makes Investment in Dermatology Practice Management Business
The Riverside Company has invested in The Dermatology Group (TDG), a dermatology focused physician practice management company with 16 company affiliated locations throughout Northern and Central New Jersey. TDG’s company-affiliated locations combine to form the largest provider of dermatological clinical, surgical, cosmetic, and dermatopathology services in the region.
“TDG provides convenient access to dermatology services that benefits patients, payors, and referral sources,” said Riverside Managing Partner Loren Schlachet. “There is a severe shortage of dermatologists, and TDG’s 16 locations and 34 providers allow quick and convenient access to dermatology care that is valuable to patients, payors, and referral sources in the region. The university training of the board certified dermatologists and breadth of specialties is unparalleled in the greater Northeast.
Demand for dermatology services is growing, driven by the rising incidence of skin cancer and an aging population. Riverside expects to work with TDG management to increase the company’s scale and geographic reach through strategic add-on acquisitions and provider recruiting.
“It is increasingly challenging to run an independent dermatology practice due to a more complicated managed care landscape and burdensome electronic medical record and administrative requirements,” said Riverside Vice President John McKernan. “Providing dermatologists with an opportunity to consolidate back office accounting, contracting, IT, marketing, scheduling, and other services with TDG allows them to earn similar compensation while focusing more on patient care and less on administration.”
McKernan is Riverside’s Healthcare Industry Sector Head, helping evaluate and grow healthcare opportunities for the firm, which has invested in more than 85 healthcare companies in its history.
Working with Schlachet and McKernan on the deal for Riverside were Partner Joe Lee, Associate Jason Chang, Vice President Dan Haynes, and Finance Director Lynda Barr. Origination Principal Scott Gilbertson sourced the deal for Riverside.
Brown Gibbons Lang & Company was the exclusive financial advisor to The Dermatology Group.