AMS CORPORATE SPONSOR – PANACEA FINANCIAL
Finding a Practice Lender & Bank : Choosing Wisely Today for Your Practice Tomorrow
BY MICHAEL JERKINS , MD , M . ED .
Here are some other things to consider when choosing your banking partner :
We all know it . These are tough economic conditions for both patients and physicians . Nevertheless , I encounter many in our profession that want to enter or grow in private practice but do not know where to start .
A big part of growing or entering private practice is finding a banking partner that can support you in your practice needs . Finding a lender that has the best program AND will provide you the best support to allow you to focus on what you do best — patient care — rather than worrying about banking for your practice .
Practice ownership can affect all areas of your life , so before choosing a lender , you should consider your wants and needs in every aspect of your life — personal and professional — to map out your priorities .
Think about your future plans for the practice , how you want to lead your team as an owner , how much you want to work clinically , and how you would bring in other clinicians . Then , use these priorities to help you find a lender that aligns with your long-term plans .
It can be tempting to choose a lender based solely on a low rate , but this can be a dangerous strategy for several reasons . For instance , lenders may lock you into their program for years with a prepayment penalty or charge you exorbitant fees on merchant services for your practice .
They also may not be prepared to support any future growth you have planned for your practice . All of these variables can be more important than simply looking at the interest rate of a loan .
Specialty Knowledge :
Does the lender have specialized knowledge in health care lending to practices ? Lending to a medical practice or surgery center is very different from another business and requires experience .
Structure and servicing :
Understand if there are fees or limits on deposits and services like checking accounts , ACHs and wire transfers , costs for banking equipment , and remote deposit capabilities . Those costs can add up very quickly .
Merchant services ( credit card processing ):
The ability to accept payment from your patients is obviously vital to your practice . This includes credit cards . Some lenders require borrowers to use their merchant services but attach high fees that can counteract any savings you may have gotten from a low rate .
Future support :
Ask any potential lending partner if they can support any future lending needs for your practice such as real estate purchases , construction or expansion , equipment purchases and more .
Private practice can be rewarding , but I know it can also be tough . That is why it is important to work with a true lending and banking partner that cannot just support you today but also be able to better support you tomorrow . You and your patients deserve it . ■
88 THE JOURNAL OF THE ARKANSAS MEDICAL SOCIETY