The Pros and Cons of Lockboxes

Some physicians use a lockbox service at their bank. It works like this: They have a separate post office box to receive checks. Bank employees collect and process the checks daily, depositing them directly into the practice's account. The practice receives the deposit slip and checks the next day.

Is this a service you should be using? Here are some pros and cons:

Pros

  • Your money gets in your account faster.
  • Staff doesn't spend time preparing deposits.
  • The service protects your practice from embezzlement by staff.

 

Cons

  • You pay a fee for the service.
  • If your office collects copayments at time of service, staff has to process and deposit checks anyway.
  • Staff must post payments the day after the checks are deposited. Otherwise, you risk double billing patients and insurance carriers. This wastes staff time, annoys patients, and - in the case of insurance carriers - could result in charges of fraud.

Source: Physicians Practice Pearls , Sept. 5, 2002  

 

Content reviewed: 3/26/2007

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