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Banking for Dermatology Rollups

Banking for Dermatology Rollups

Banking for Dermatology Rollups

4 min read

2026-06-16

Group Practice

Dermatology

Reconciliation

Treasury Management

Derm platforms collect medical claims revenue and cosmetic cash at the same front desk. Separating those flows in your banking layer keeps audit, payer reporting, and sales tax clean.

Two Cash Flows, One Front Desk

A modern dermatology practice runs two businesses at the same desk. The first is medical dermatology: insurance-billed visits for acne, psoriasis, skin cancer screening, biopsies. Those revenues come through claims, 835s, and lockbox checks. The second is cosmetic: Botox, fillers, lasers. Those revenues come through credit card and cash, billed and collected the same day.

Both flow through the same patients and the same providers. Neither flows through the same accounting buckets. If your banking design does not separate them at the deposit layer, your audit, payer reporting, and sales tax all get harder than they need to be.

Why Separation Matters Below the EBITDA Line

Three places this shows up.

  1. Sales tax. Most states tax cosmetic services but not medical services. If your point-of-sale system bundles both into a single daily deposit, your accounting team has to back into the taxable share monthly. With separate deposit streams, the tax filing reads off the cash directly.

  2. Payer audit. If you ever get a payer audit (when, not if, at scale), the auditor wants to see only the medical claims revenue. If your banking layer commingles cosmetic, you produce more documentation than you need to.

  3. Per-location reporting. PE-backed rollups want medical and cosmetic revenue tracked by location, by provider, and by service line. Banking that supports this from day one saves a quarterly back-office cleanup project.

The Architecture for a 20-Location Derm Platform

Three account layers per PC.

  1. A claims revenue account that receives all insurance 835s and lockbox checks. EFT enrollments point here. Reconciliation runs against open claims.

  2. A cosmetic revenue account that receives merchant settlement deposits for credit card and cash. Sales-tax-eligible revenue posts here.

  3. An operating account that disburses payroll, vendor payments, and overhead. The first two accounts sweep into this on a defined schedule.

For 20 locations, multiply by 20. With virtual accounts under a healthcare-native bank, that's 60 virtual numbers but one banking relationship and one consolidated dashboard.

What Changes for Your CFO

Three numbers become accessible that were not before.

  • Medical revenue per location, per provider, per payer, end of each day

  • Cosmetic revenue per location, per service line, end of each day

  • Sales tax accrual that ties to actual cosmetic cash, not an estimate

Those numbers also become defensible. Your audit committee can answer questions in 10 seconds. Your PE sponsor's quarterly review gets cleaner. Your tax filings shrink.

Group Practice

Dermatology

Reconciliation

Treasury Management

Reconciliation

Treasury Management

Reconciliation

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FAQ

Common questions

Why separate medical and cosmetic revenue at the banking layer instead of in accounting?

Why separate medical and cosmetic revenue at the banking layer instead of in accounting?

Why separate medical and cosmetic revenue at the banking layer instead of in accounting?

Does this architecture work for a 50-location platform?

Does this architecture work for a 50-location platform?

Does this architecture work for a 50-location platform?

What changes for sales tax filing?

What changes for sales tax filing?

What changes for sales tax filing?

Lemma banking services are provided in partnership with Core Bank, Member FDIC. Deposits are FDIC insured up to $250,000 per depositor.

Lemma Technologies, Inc. is not a bank. Banking services are provided by Core Bank.

© 2026 Lemma Technologies, Inc. All rights reserved.

Banking services provided by partner banks, FDIC insured.

Lemma banking services are provided in partnership with Core Bank, Member FDIC. Deposits are FDIC insured up to $250,000 per depositor.

Lemma Technologies, Inc. is not a bank. Banking services are provided by Core Bank.

© 2026 Lemma Technologies, Inc. All rights reserved.

Banking services provided by partner banks, FDIC insured.

Lemma banking services are provided in partnership with Core Bank, Member FDIC.

Deposits are FDIC insured up to $250,000 per depositor.

Lemma Technologies, Inc. is not a bank. Banking services are provided by Core Bank.

© 2026 Lemma Technologies, Inc. All rights reserved.

Banking services provided by partner banks, FDIC insured.

Ready to modernize your

practice banking?

Open in minutes, no branch visit required

Free ACH – Lockbox – Wire transfers – 1.75% APY

Book a demo

Ready to modernize your

practice banking?

Open in minutes, no branch visit required

Free ACH – Lockbox – Wire transfers – 1.75% APY

Book a demo