Medical professionals often face complex financial decisions when planning for the long-term growth of their practices. Aligning these plans with a banking partner who understands the unique challenges and opportunities in the medical field can provide significant benefits.
“A banker can offer tailored financial solutions, strategic advice and a level of personal service that is essential for navigating the financial landscape of a growing medical practice,” says Eric Jones, VP, commercial lending at First Federal Lakewood.
Smart Business spoke with Jones about the importance of aligning your practice’s long-term growth plans with a banking partner and what questions you should be asking.
What do I need to prepare if I want to grow my practice?
The first step is to have a clear understanding of your current practice status and your long-term plan and goals — whether that’s a five-year or 10-year plan. If you’re thinking about succession planning, patient acquisition, or expanding or selling your practice, your banker should be involved in these conversations to help you understand the value of your practice and the financial implications of these decisions so they can provide the necessary funding and support. This initial conversation is crucial because it ensures that your banking partner is not just a provider of financial products but a trusted adviser who is committed to your success.
Who should I have on my team while I’m planning for my practice’s growth?
A strong support team, including a Certified Public Accountant (CPA) and an attorney, is indispensable for medical professionals planning to grow their practice. These individuals can provide valuable guidance on tax changes, labor issues, and other legal and financial matters. For example, a CPA can help navigate complex tax regulations, while an attorney can ensure that all legal aspects of expansion are handled correctly. This team ensures that the practice is aligned with industry standards and is prepared for any potential changes or issues that may arise, facilitating smooth and efficient growth.
What products and services should I consider?
It can be overwhelming to research what banking products and services would serve your practice best. That’s where your banker comes in. When they’re aligned on your future goals, they’ll be able to recommend products that are best for you. For example, they can offer health care business loans to ensure you have the resources to grow without compromising your financial stability. Don’t forget to inquire about their approach to efficiency, including treasury management services like Automated Clearing House (ACH), sweeps and remote deposit capture, and whether they can help set up systems to optimize financial operations.
Additionally, consider the bank’s local presence and the level of personal service they offer, as these factors can significantly impact the quality of guidance and support you receive during critical transitions. While many banks offer similar financing products, community banks can provide a more tailored and aligned approach. These banks are typically more involved in their neighborhoods and understand the needs of local businesses. They can also offer a level of personal interaction that is invaluable for medical practices. A relationship manager, for example, can offer ongoing guidance and support rather than relying on impersonal call centers. This personal touch can make a significant difference in managing your practice efficiently and effectively.
In the medical field, aligning your long-term growth plans with a banking partner is not just a financial decision; it is a strategic one. A well-aligned banker can offer personalized services, support patient acquisition, and provide guidance on succession planning. By having open and ongoing conversations about your practice’s future, you can build a strong foundation for growth and ensure that you have the financial support and resources needed to achieve your goals. ●
INSIGHTS Banking & Finance is brought to you by First Federal Lakewood.
