Working with a financial institution for healthcare payment processing via a medical lockbox is an excellent method to eliminate inefficient in-house manual processes for healthcare providers. Providers can typically reduce overhead, improve collections in receivables, decrease bad debt/write-offs, reduce fraud and eliminate paper in the office. While the benefits can be impressive, selecting the right vendor can often be a confusing task.
Not all Medical Lockbox Providers are Created Equal
While the basic concept of a lockbox does commoditize the service at its most basic function, a medical lockbox service via a financial institution can easily differentiate themselves via these ten important concepts:
- Are the checks and explanation of benefits (EOB) returned to the provider via paper, copied or provided via an online electronic archive?
- Are you given access to an electronic record of claims and payments with the ability to audit and reconcile the two?
- What options are available for denials management? Does the financial institution private label “denials” to the provider?
- Does the service provide error reporting to the service line?
- What is the expected turnaround time for each claim?
- Is the service HIPAA compliant?
- Does the financial institution provide a temporary solution which enables the provider to scan EOB’s and upload them while the P.O. Box transition is in process?
- Does the bank offer interest on the funds in your lockbox account?
- Is the solution Cloud-based?
- What fees are standard for the lockbox service and which are additional expenses?
Understanding the options available is an important first step to selecting a vendor that best fits your practice’s needs. If you need additional help in determining which vendor is best, ask for references and further demonstrations. Selecting a new vendor takes time but, in the end, thorough examination of all available options will help to maximize value from your medical lockbox provider.