How can relationships between hospitals and local banks help hospitals?
Running a hospital is like running a small city. We are usually the largest employer in a town. We own a lot of real estate, we deal with a lot of local firms, such as construction companies. And often our doctors want to look at banking relationships, such as payroll processing. The corporate cultures may be very different, but it’s important that you have a local strategy, because not only do we support one another, but by working with local banks you are able to identify potential benefactors and enhance fundraising opportunities.

Do you find that the banking and finance industry understands the unique needs of healthcare institutions?
We constantly have to educate them. Our business model is very complicated, very regulated. We have to explain what our strengths and weaknesses are. As a Catholic hospital, knowing that we are defined as a ministry of caring for people, and we have a vocation to care for the poor and underserved, you need to balance between being good stewards of your resources and hitting your budget. The better we perform on the secular side, the more we can do for the at-risk population in our community. It may be contrary to secular business thought, but it’s a good story. We do very well financially, but we give a lot back to the community.

What advice would you offer to hospitals who want to develop their relationships with local banks?
The local bank is a great resource to identify those companies that are strong and have an opportunity to be strong advocates for the hospital. The banks can help build the hospital community and be part of the strategic planning. There is an inherent synergy between the two. The bank can be a great resource.