LOCKBOX SYSTEM

What is a Lockbox

Why Do You Need One?

A lockbox is a bank-operated mailing address to which the medical practice directs its insurance carriers and patients to send their payments. This includes EFT, paper checks, and all correspondence sent by carriers.

The bank opens the incoming mail, deposits all received funds in the practice’s account, and scans the payments and any remittance information. The scanned images are posted to a secure website which our billing service accesses daily. We use the images to apply payments to outstanding accounts receivable and respond to carrier requests for information.

What is lockbox system?

The lockbox system is encouraged by banks for its security and expediency.

The bank charges a fixed monthly fee for each lockbox as well as a servicing charge for each payment processed. Most national banks offer lockbox services. Some very small banks do not have the capabilities to provide this service. Our staff will walk you through the steps required to establish a lockbox for your practice.

Once you have it in place, we will contact Medicare and all your contracted carriers and have EFT, paper checks, and any correspondence re-routed to your lockbox address. Patients who receive statements will also send checks to the lockbox address which appears on their monthly statement. It’s important to know that our company has no access to your account.

A lockbox system is an excellent way to track payments and reduce banking time. There is also much more accountability and it greatly reduces any chance of embezzlement.
Note: However, as the method of payments gradually shifts away from paper checks to electronic payments, the costs associated with lockbox systems will likely be reduced significantly.

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