Online banking: Making the most of electronic financial services

It's become more than just direct deposit and bill paying. Handling all your practice's banking and cash-management tasks on the Web could be a way to boost efficiency and speed cash flow.

By Tyler Chin, AMNews staff. April 12, 2004.

When the Spokane (Wash.) Surgical Group contacted its banker about setting up direct deposit for employee payroll, it also discovered the practice could -- for a fee -- electronically access detailed account balance information, view images of checks it wrote and set up automatic payments for patients.

"I didn't know the bank had all these options [available]," said Kristy L. Fresh, administrator of the six-surgeon group, which signed up for online services at Washington Trust Bank in Spokane to improve collections and employee productivity and to gain 24-hour access to up-to-date financial information. "I'll be able to access ... information online and have a true snapshot every single week of where [the] practice stands."

But despite the convenience and other benefits online banking can provide, consumers and businesses have been slow to adopt it. Only 18% of consumers pay bills online, according to Harris Interactive.

Although it isn't known exactly how many physician groups bank online, the numbers are small. There are some technological and cultural barriers at both the insurer and physician ends, experts say.

Practice management consultant Rosemarie Nelson often finds that most practices submit claims electronically to Medicare but don't sign up to receive electronic funds transfers and payment remittance advice, even though Medicare makes both transactions available.

"There's just that [mind-set] of I want to see [the paper check] in my hand," said Nelson, who also is a senior consultant for the Medical Group Management Assn. "If groups aren't taking advantage of electronic funds transfers for Medicare, then the commercial payers probably don't see any great advantage of trying to drive [electronic payment to physicians] either."