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Editorial
July 24, 2019

Private Equity and Dermatology—First, Do No Harm

Author Affiliations
  • 1Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, Baltimore, Maryland
  • 2General Preventive Medicine Program, Johns Hopkins Bloomberg School of Public Health, Baltimore, Maryland
JAMA Dermatol. 2019;155(9):1007-1008. doi:10.1001/jamadermatol.2019.1322

Two years ago, one of the world’s largest retailers of children’s toys, Toys “R” Us, filed for Chapter 11 bankruptcy, closing more than 1000 stores across the country.1 Many financial observers trace its demise to the 2005 takeover by private equity firms. The new owners paid themselves handsome fees, eliminated positions, reduced employee benefits, and forced the retailer to take on billions of dollars in additional debt.1 When the weakened company was unable to mount a strong defense against online retailers, bankruptcy soon followed.

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