The organization and delivery of health services in the United States is currently being re-evaluated in light of emerging trends in the supply and distribution of physicians. The recent GMENAC report identified an impending physician surplus in many specialties and a near-balance situation for dermatology by 1990. In this paper we examine the supply, distribution, and economics of medical practice for dermatologists relative to other specialties. To address the prospect of increasing physician supply, we evaluate emerging national health manpower policies. In addition, we discuss potential effects of market forces in the health care sector.