Clinics operate on razor-thin margins. Faster payments and stretching payables are two strategies that can put your clinic in a better financial position almost immediately. By using cash management tools that are available at your local community bank, you’ll improve cash flow and, even better, reduce time and labor on processing payments and pursuing receivables. The following will outline some ways in which cash management tools can save time and improve cash flow in a clinic setting.
Streamline check processing
Remote Deposit Capture (RDC) tools are a faster way to process those stacks of checks. With an internet connection and a check scanner and software provided by Minnwest Bank, the program collects an electronic version of your check. This kicks off an electronic transfer between accounts, which means your clinic will gain access to same-day credit by 6 p.m. in many cases. With the elimination of check float, RDC can reduce your billing cycle and improve cash flow. The software also uploads the transaction right into your accounting software, which saves time and reduces the instance of human error. Finally, the entire process can get done in minutes in the office, with no need to transport the checks to the bank.
Deploy automatic payments
Another cash management tool clinics can deploy to optimize cash flow is the automated clearing house (ACH). How it works is it lets you set up a transfer from the payer’s account to the clinic’s — with the payer’s consent. This tool can also be put to use for regular payments, so if a patient is on a payment plan to make a large medical expense more manageable, ACH lets you set up an automatic payment. Rather than waiting for the patient to initiate payment, funding automatically enters the business account on the specific date, increasing the clinic’s access to working capital. Furthermore, because there’s a direct transfer, you’ll reduce the opportunity for insufficient funds.
Make payments effortless
Most clinics accept card payments, but many have yet to accept card payments online. Considering most clinics are open during a specific set of business hours, failing to accept online payments is a missed opportunity to get paid faster. Now that an increasing number of consumers are growing more accustomed to paying online, it's a good time to pursue convenient tools that let patients pay their doctor bill on their time, their schedule. When office hours and mail delivery are no longer getting in the way of bill payment, online card payments speed up receipt of patient payment.
For further reading, check out Top cash flow challenges in health care (and what clinics can do about them)
Stretch payments and improve forecasting
Get more out of your business checking account and start paying bills online. The clinic gains the ability to stretch payments to the latest date allowed. This tool provides a simple and effective way to improve cash flow. Because there’s no check float, it improves the clinic’s ability to forecast and provide real-time cash balances. Another advantage of online bill pay is it saves on labor-intensive tasks, like reconciling and mailing physical bills.
Minnwest Bank offers the same cash management tools available at large institutions, but with the personalized service you’ll experience at a Community Bank. Meet with a helpful cash management specialist at Minnwest Bank. We’re located right in your community and we’re ready to help your clinic get more done!