Philadelphia Medicine Winter-Spring 2021 - 26

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FEATURE

Good Banking Partners
Benefit Physicians, Practices
By James Acquaviva

hysicians have long been one of our most important customer
groups. And over time we've seen the many challenges they
face, including the additional stress COVID-19 has put on
their staffs and bottom lines. But with the right financial partners,
i.e., those who understand doctors' time constraints and specialized
product needs, they and their practices can achieve their financial goals.

Cost Efficiencies in Handling
Payments and Cash Flow

A well-run practice also needs systems that manage money going
in and out of the business as efficiently as possible. Physicians' groups
are unique in that they often have electronic debits set up with dozens
of
equipment, insurance and other vendors. In addition, they handle
The Philadelphia-area medical groups we work with range from
checks
as well as thousands of patient credit card transactions a month.
small independent practices to large multi-specialty hospital affiliates.
This
means
that cash flow is more complicated and urgent than in
Regardless of size, we see a common scenario: an overworked doctor
many
other
businesses. A good cash management system can make
who wants to grow the practice or make it run more smoothly but
things
easier
for the practice by, for example, segregating payments
doesn't have the time to figure out how. And as their income increases,
of
a
certain
category,
such as insurance, into a separate account for
they want their growing wealth to support their family's lifestyle and
easier
tracking,
while
also automating the deposits to the operating
future in the best way possible.
account at the end of the day. And credit card processing, usually
called merchant services, can be done with technology designed
specifically for the medical industry.

Practice Growth and Management
Requires Financial Expertise and a
Personal Approach

In most independent practices, the lead physician acts as
CEO, so it's up to her or him to establish, maintain and grow the
" business. " They begin by renting a location and hiring health care
and administrative staff. Success invariably follows and is often
accompanied by a desire to move or build a larger facility. Many
practices also want to diversify by offering urgent care and other
specialties, which require additional medical equipment and more
sophisticated business systems.

A good cash management expert can set up all of these systems,
assuring that they are customized to the practice with the most
cost-effective fee structure. Moreover, the banker should be the
point person to transition the practice to the new system by communicating with the vendors. This takes the burden off of the busy
practice manager.

Personal Finances

As a physician's income grows, he or she can often benefit from
recommendations on how best to manage wealth. This can include
It's at this point that the physician needs outside financial expertise. jumbo mortgages, as well as home equity loans and lines of credit for
This is ideally provided by a bank large enough to have sophisticated household renovations or a child's education. Other services include
services and committed enough to respond in the doctor's narrow assistance in purchasing an investment property or vacation home at
window of availability, not the banker's. The bank also should offer: the Jersey Shore, Delaware beaches or other favorite location. Finally,
a bank's affiliate partners can provide support with insurance for
* The right financing options such as SBA, real estate and equip- valuable assets and investments and portfolio management.
ment loans, depending on need
* Technology that allows the doctor to communicate with the
banker conveniently and securely (Just as COVID-19 has
required doctors to rely more on telemedicine, it has forced
banks to upgrade their virtual platforms in order to grow client
relationships.)
* Options for changing insurance needs, provided by the bank's
affiliate partners
* Recommendations on 401(k)s and Health Services Accounts
to benefit growing medical staffs
* Options for handling personal wealth, such as jumbo mortgages
and investments

26 Philadelphia Medicine : Winter-Spring 2021

Your Time is of the Essence
Most importantly, a bank that understands medical practices
knows their entire day is scheduled around seeing patients, with very
little time to spare. A relationship-oriented banker works on the
doctor's timetable. They will assure you are operating as efficiently
and cost effectively as possible so that you can focus on your most
important responsibility: serving patients. *
Jim Acquaviva, a vice president with Tompkins VIST Bank, has more
than 25 years serving Philadelphia-area physicians and medical practices.
Based in Blue Bell, he can be reached at jacquaviva@tompkinsfinancial.
com and 484.269.3885.

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Philadelphia Medicine Winter-Spring 2021

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