Prerequisites
- Per-entity operating accounts
- A decision on deposit method
- A daily reconciliation process
Choose a deposit method
Lockbox has a control benefit beyond convenience: it removes physical checks from the office, which removes a theft and internal-control problem. It also matters to lenders — facilities secured by healthcare receivables are commonly structured around controlled lockbox arrangements. See Working capital and AR lending.
Endorsement and entity matching
A check payable to a PC must be endorsed by that PC and deposited into that PC’s account. You cannot deposit a check payable to “Meridian Dermatology CO, P.C.” into the Arizona PC’s account or the MSO’s account. That is both a bank problem and a commingling problem. In a multi-entity group this means per-entity endorsement handling, separate stamps, separate deposit workflows, and staff who know which is which. Use a restrictive endorsement: “For Deposit Only, [Entity Legal Name], [Account Number].” It limits what can be done with a lost or stolen check.Joint-payee checks
🦴 PT/Chiro and personal injury practices, settlement checks are frequently payable jointly to the practice and the patient or the attorney. Every payee must endorse before deposit.Build this into the workflow: a process for obtaining the patient’s or attorney’s endorsement, a tracking log for checks awaiting endorsement, and a policy for how long you hold one before escalating. Joint-payee checks sitting in a drawer awaiting a signature are uncollected revenue and a control risk.
Deposits can reverse days later
A deposited check can be returned after you have treated the funds as available.
The return arrives days later, reverses the credit, and usually carries a fee.
Mobile deposit specifically: mark or destroy the physical check after deposit per your bank’s retention guidance, so it can’t be deposited twice.
Reassociating paper to remittances
Harder than with EFT. An EFT carries the TRN trace number in its ACH addenda record; a paper check does not. The process:- Log every check on receipt, payer, check number, amount, date received
- Match to the 835 by check number where the remittance references it
- Where no 835 exists, request one, or push the payer to ERA
- Never post a paper payment without knowing which claims it covers
Push payers to EFT
Every paper-paying payer is a recurring cost. Complete their EFT enrollment. Every conversion is permanent. And if a payer sends virtual credit cards instead of EFT, that costs you 2–3% of the payment. Enroll in EFT and ask in writing to opt out of the card program. See Paper checks and virtual credit cards.Multi-entity check operations
Each PC needs:- Its own deposit method pointed at its own account
- Its own endorsement stamp
- Its own lockbox arrangement, if using one, since the payee entity determines the destination account
- Its own check stock for outbound refunds, drawn on its own account with its own signer
Lemma includes check deposit across entities in one interface, so a multi-PC group doesn’t need a separate deposit workflow and login per entity. Named here under our mention policy; the endorsement and reconciliation discipline above applies wherever you bank.
Verify it worked
- Deposit method chosen appropriately for volume
- Per-entity endorsement stamps, restrictive endorsement in use
- Every check deposited into the payee entity’s account
- Joint-payee workflow defined with a tracking log
- Checks logged on receipt before deposit
- Returned-item review part of daily reconciliation
- Patient checks not posted as cleared on deposit date
- Physical checks marked or destroyed after mobile deposit
- Paper-paying payers being converted to EFT