At 18% of the U.S. economy, healthcare has become too large, too complex, and too strategically critical for banks to treat like any other vertical. Hospitals are not “just another non-profit” to lump in with government and higher ed. Smaller medical (and veterinary) providers behave quite differently – and have different needs – than merchants in the broader SMB market. FinMed Partners recently took a look at the factors driving banking competition in the healthcare provider market, and which banks rise to the top. A handful of national and super-regional banks stand out in this analysis. Other financial institutions continue to underinvest in capabilities to serve the specialized payments, revenue cycle, and health IT needs of provider organizations.

Through extensive primary and secondary research, including interviews with senior banking executives, FinMed Partners identified three distinct bank archetypes: Uncommitted, Contenders, and Power Players. These categories reflect not just the depth of a bank’s healthcare strategy, but its ability to integrate lending, treasury, payments, and technology into a cohesive value proposition for hospitals, medical groups, and other types of healthcare providers. This chart gives an overview of these categories:

What separates leaders is clear: Healthcare‑savvy credit capabilities, advanced payments infrastructure, integrated RCM and treasury solutions, EMR connectivity, and a unified organizational owner and reporting structure for healthcare. The shift toward patient‑driven payments, along with rising reimbursement pressure and cybersecurity risk, makes these capabilities non‑negotiable for banks looking to grow in the sector. Here is FinMed Partners’ positioning of selected banks competing for healthcare business:

Meanwhile, fintechs, PayFacs, digital wallets, and specialized health IT players are aggressively encroaching on traditional banking territory. This creates both urgency and opportunity. Banks that adapt can unlock new revenue, deeper relationships, and defensible differentiation. Those that don’t risk being sidelined.

At FinMed Partners, we help banks, fintechs, health IT companies, and investors navigate this evolving landscape with strategies rooted in deep healthcare, payments, and financial‑services expertise. Reach us today at info@finmedpartners.com to learn more about how we can help you navigate the complexities of today’s healthcare market and accelerate your growth.