Lending to Medical and Dental Practices
Lending to Medical and Dental Practices provides the knowledge and skills needed to make informed lending decisions when considering an application from medical or dental practice. This course focuses on identifying different forms of practice organizations, current issues and trends facing physicians/dentists, hospitals, and payers, analyzing and valuing group medical and dental practices, and structuring and making loans for these types of practices.
Participants are expected to have a practical knowledge of financial accounting, financial statement analysis, and cash flow analysis.
Who Will Benefit?
Credit analysts, loan review personnel, and lenders as well as: other commercial banking professionals who are involved in lending to medical practices; or who want to learn more about the basics.
Upon completion of this course, participants will be able to:
- Recognize current issues and trends of the health care industry faced by physicians, hospitals, payers, and the risks these pose to loan repayment.
- Recognize current issues and trends faced by physicians/dentists, hospitals, and payers, and the risks these pose to loan repayment.
- Perform a business analysis of the group medical or dental. practice as a way of assessing loan repayment risks.
- Determine how medical and dental practices are impacted by the continual fluctuations and shifts in the health care industry, including the Affordable Care Act.
- Evaluate which segments of health care are growing or declining because they are attracting a lower or higher portion of the U.S. healthcare dollar.
To supplement instructor-led discussions, this course actively involves participants in large and small group discussions and exercises. After being introduced to concepts and best practices, participants study cases throughout the class and are asked to arrive at decisions and explain the rationale for their decisions. Furthermore, involvement facilitates their ability to apply the course’s content when they return to their jobs. This course reinforces the importance of financial statement and cash flow analysis relevant to this market. The case described in this course is Orthopedic Surgeons, Inc. Orthopedic Surgeons, Inc. is an 11-physician orthopedic surgery practice with revenues in excess of $6 million. The purpose of the case is to identify and analyze loan repayment risk, use medical practice financial analysis techniques to evaluate repayment sources, and make a loan decision.