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U.S. Bank Growing New Healthcare Vertical

FINANCE: State, Local Teams Ramped Up to Meet Demand

SAN DIEGO – With an eye on capturing a greater piece of California’s largest-in-the-nation market of private healthcare practices, U.S. Bank has been steadily expanding statewide its new healthcare vertical launched last year.

The new healthcare vertical was thought up two years ago after the bank’s leadership looked at its previous platforms and saw it could be “much stronger” in the industry and “ramp up” what it could provide to private practices, said Gary Dudzik, senior vice president and regional healthcare executive at U.S. Bank.

Gary Dudzik
SVP & Regional Healthcare Executive
U.S. Bank

Dudzik, who leads the healthcare vertical for all of California from his office in San Diego, said U.S. Bank wanted to recreate its model and give “a much more robust offering to the marketplace.”

Prior to revamping and expanding its healthcare vertical, U.S. Bank served its healthcare practice owners across the country with a specialized group of banking professionals focused on loan originations.

“We looked at that model and we wanted to have a more regional approach where when that loan is finished, the doctor has access to a local relationship manager that is going to help them through the loan process and as they go forward to help grow their practice,” Dudzik said.

Over the last year, U.S. Bank has grown its healthcare banking team from 10 to 88 individuals across the country, Dudzik said, adding that 20 of those bankers are based in California to serve the state’s dominant 36% of the nation’s private practices.

San Diego is an area targeted by U.S. Bank as “a major city with lots of opportunity, Dudzik said, adding that two of the bank’s first hires for the healthcare vertical in the state were to in the city. That number has now grown.

“San Diego, we look at as a huge opportunity,” Dudzik said. “Within eight months we’ve hired five people and when I look at the market and the opportunity and what we’ve seen from it already, our expansion plans over the next 12 to 24 months in the marketplace is going to be big to meet that demand.”

Local, White Glove Approach

One advantage of localizing U.S. Bank’s service to healthcare practices is it allows the bank to offer a white glove approach to connecting clients to a variety of services including payments, wealth management and treasury.

“We wanted to put together a destination for doctors to where they can come and have the financial offerings, not only from a loan perspective, but help deepen and develop the entirety of their practice and make sure they’re taken care of individually as well … and we wanted to do it from a local approach,” Dudzik said. “It’s very difficult to do that from a 1-800 number. It’s a lot easier to bring the experts to the doctor, have the conversations and do it that way.”

Dudzik said one segment of the market that U.S. Bank hopes to capture with this expanded service are young professionals coming out of medical school who “want to get out on their own.” The bank has made education a focus of the program to help them get started and manage their special needs such as paying off high student loans.

Dudzik also sees the aging workforce of private health practitioners as “a huge opportunity to work with doctors that are looking to start to move on from their practice and sell it.”
“We want to make sure they have wealth advisors to put that money in the proper places and make sure they’re taken care of – but we also want to make sure we are there to support the associates that want to buy that practice,” he said.

The bank is also reaching out across the spectrum of private health practices, which traditionally has seen most of the attention from financial institutions going to dental practices because of dentistry’s high concentration of private practices.

“When I think about healthcare in the vertical, we of course want to be excellent working with dentists, but we also want to make sure doctors are taken care of, plastic surgeons, dermatologists, veterinarians, optometrists – we want to make sure the whole gamut of private practice are taken care of and that’s where the expansion came in,” Dudzik said, adding that healthcare has seen “a lot of growth” and “string demand” since the bank launched its vertical eight months ago. “A lot of the marketplace doesn’t realize they have access to financing”

U.S. Bancorp (U.S. Bank)
FOUNDED: 1863
HEADQUARTERS: Minneapolis, MN
CEO: Andrew Cecere
BUSINESS: bank/financial services
STOCK: USB (NYSE)
REVENUE: $40.62 billion (2023)
EMPLOYEES: 77,000
WEBSITE: usbank.com
NOTABLE: In December 2022, U.S. Bank completed an $8 billion acquisition of Union Bank, a re-gional bank serving California, Oregon and Washington.

[Editor’s note: This article has been updated from a previous version to correct that U.S. Bank did not have its central hub for healthcare bankers in Ohio.]

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