Navigating Finances in Dermatology: Top 5 Considerations for Dermatologists

Financial management is an aspect of running a private dermatology practice, and along with knowing about an armamentarium of therapies, it's important to have an armamentarium of business tools. In an exclusive interview with Gary Dudzik, California’s regional executive for health care business banking at US Bank, he shared top 5 considerations dermatology clinicians should have when choosing financial services for their practices and overall financial goals. He was one of a handful of practice management professionals on the exhibit hall floor at the 2024 American Academy of Dermatology Annual Meeting in San Diego, California.

“We [my colleagues and I] decided we really have to get out to the marketplace and educate people on what can be done, not only from a loan perspective, but their overall banking perspective. And when you think about that, we want to help grow their business. So they can focus on their patients, which is their first and primary objective. But we also want to help them personally, because those doctors start very early, and they run through the day, and they are helping people all day long. We want to take off their plate is the worry about their banking needs and administration things,” Dudzik said to Dermatology Times.

Customized Financial Solutions

Dermatologists can prioritize financial services that offer personalized solutions tailored to the unique needs of their practices and stages of their career including loans, refinancing, wealth management, and more. Gary emphasized, "One size does not fit all in the financial world. Dermatology practices vary widely, and it's crucial to work with a bank that understands the specific challenges and opportunities in the dermatology field."

Technology Integration for Efficiency

In today's fast-paced digital landscape, clinicians should look for financial services that seamlessly integrate technology to enhance efficiency. Dudzik advised, "Choose a bank that provides advanced online tools for managing transactions, monitoring cash flow, and accessing financial reports. This ensures that your practice can operate smoothly and adapt to the evolving technological landscape."

Transparent Fee Structures

Dermatology clinicians should carefully examine fee structures associated with financial services to avoid unexpected costs. Dudzik emphasized transparency, stating, "Hidden fees can significantly impact a practice's bottom line. Dermatologists should choose financial services with clear and transparent fee structures, allowing them to budget effectively and avoid unnecessary surprises."

Comprehensive Risk Management

Dermatology practices are not immune to financial risks, and clinicians should prioritize services that offer comprehensive risk management solutions. Dudzik suggested, "Financial institutions that provide insurance products, investment advisory services, and risk assessment tools can help dermatologists mitigate potential financial risks, ensuring the long-term stability of their practices."

Proactive Relationship with Financial Advisors

Establishing a proactive relationship with financial advisors can be helpful to make informed financial decisions. Dudzik advised, "Choose a bank that assigns dedicated financial advisors with expertise in healthcare and dermatology. Regular consultations and check-ins can help dermatologists stay ahead of financial challenges and capitalize on growth opportunities."

Dudzik emphasized that clinicians must approach their financial management with a strategic mindset. By considering these 5 key factors – customized financial solutions, technology integration, transparent fee structures, comprehensive risk management, and proactive relationships with financial advisors, clinicians can make well-informed decisions that contribute to the overall success and longevity of their practices. "The right financial services can be a game-changer for dermatologists, enabling them to focus on what they do best – providing top-notch dermatological care," Dudzik concluded.