- Key takeaway: After previously focusing on existing healthcare practices, U.S. Bank has unveiled a loan for veterinarians and dentists aiming to start from scratch.
- Supporting data: The Minneapolis-based bank has built a healthcare lending group with more than 100 dedicated bankers since hiring Joseph Persichetti in 2023.
- Expert quote: "You're starting to see more people decide … that they want to be an independent owner." — Joseph Persichetti, U.S. Bank's head of healthcare business banking
U.S. Bancorp's recent move into financing startup healthcare practices represents a strategic shift for the Minneapolis-based lender, which had previously focused only on established clients.
The $701 billion-asset U.S. Bancorp, the parent company of U.S. Bank, has long served dentists and veterinarians looking to expand an existing practice or acquire another one. Earlier this month, however, U.S. Bank unveiled a loan product aimed at practitioners seeking to start from scratch.
"We are excited to bring this new opportunity to dentists and veterinarians who want to pursue their dream of building and operating their own practices," Joseph Persichetti, U.S. Bank's head of healthcare business banking, told American Banker.
While dealing with existing practices is widely perceived as less risky, U.S. Bank is aiming to tap into a pair of trends that are motivating some medical professionals to set out on their own, according to Persichetti. He joined U.S. Bank in July 2023 from the $285 billion-asset Huntington Bancshares in Columbus, Ohio.
In high-growth areas like Columbus and Dallas, U.S. Bank wants to position itself to respond to increased demand for healthcare services, he said.
"With population growth, what also comes is healthcare and medical needs," said Persichetti, who has concentrated on the medical sector throughout his two-decade banking career. "We've done acquisition financing for established doctors. Now, in some of these growth areas, we can support practices that aren't there yet."
More broadly, after years of consolidation, more dentists and veterinarians appear to be interested in starting their own practices. "You're starting to see more people decide [working for a large practice] is not what they want, that they want to be an independent owner," Persichetti said.
Dee O'Dell, U.S. Bank's head of business banking sales, said the company decided to expand into the startup practice sector after noticing that its existing strategy "wasn't producing the same results" it had in the past.
"If more doctors are starting up independent practices from scratch, then we've got to be there too," Persichetti added. "That's what you're kind of seeing us recognize and position ourselves for."
U.S. Bank hired Persichetti to bring focus and specialization to its healthcare operation. Over the past three years, he's built a group of more than 100 lenders whose sole area of responsibility is serving doctor, dental and veterinary practices with up to $50 million in annual revenues. The new loan product is only for veterinarians and dentists, not doctors.
"We've always had products for [healthcare providers], but before our bankers sort of dabbled in the field," Persichetti said. "What was important to us was to have a dedicated team."
U.S. Bank has also upgraded its healthcare payments capabilities. In 2024, it acquired Tempe, Arizona-based Salucro Healthcare Solutions, which offered online billing and payments services.
U.S. Bank's expanded healthcare operation mirrors similar strategies put in place by other regional and super-regional banks. The $297 billion-asset Fifth Third Bancorp in Cincinnati
Similarly, TD Bank has seen its Healthcare Practice Solutions Group expand significantly since hiring Dan Croft to lead the unit in 2014, according to the bank. Practice–finance originations have totaled more than $3 billion since then, TD has said.
