Banking: Shop and Compare

cover_JOMPM_MayJun2014_BankingComparison_JOBJournal of Medical Practice Management – May/June 2014
by Jennifer A. O’Brien, MSOD, and Sherry DeJarnette, CPA

There are many reasons to take a critical look at the practice’s banking relationship(s)—technology advancements, security measures, improvements in available services, recent banking enhancements designed specifically for medical practices, the impact of the financial crisis on bank ratings and stability, changing practice needs, opportunities for operational automation at the practice—and it is just simply smart to periodically evaluate and compare the features, pricing, and potential savings offered by vendors.

We conducted a comprehensive comparison of various banks for a large medical practice and identified 34 specific points of comparison as well as potential service fee savings. Table 1 shows the 34 elements of comparison of six banks. Most of the points of comparison fell into one or more of four categories:

  • Service and Value Added: Features available for greater efficiency in the practice’s operational procedures including accounting, revenue cycle, and point-of-service collections;
  • Direct Monetary Return: Options available that if utilized by the practice have a direct impact on the interest yield and cash flow;
  • Security: Information, transaction protocols, and account features that provide anti-fraud and other protections; and
  • Additional Considerations: Services, products, and definitions important to compare.

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