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Lockbox success story: National Cardiovascular Partners

Lockbox success story: National Cardiovascular Partners

National Cardiovascular Partners (NCP) is a healthcare services provider that offers catheterization and ambulatory surgery services to patients at 40 locations nationwide.


Established in 2006, the company introduced a hybrid ambulatory surgery center and outpatient cardiac cath lab that is helping cardiac and vascular specialists boost profits and improve efficiency. Last year, NCP realized that some of their financial practices were in need of improvement through Cadence Bank Merchant Services.


Improving receivables collections


Sabeen Ahmed, treasury analyst for NCP, says inefficiencies arose in the area of receivables collections because patients’ payments were mailed to each location, and employees had to process and deposit them.


“This was a very manual and decentralized process that was slowing down our cash flow and causing other problems as well,” she says.


For example, if an accounting employee was out of the office, checks would sit for days until he or she returned, crimping cash flow even more. Sometimes, checks sometimes got lost in the shuffle.


“Accounting employees were spending inordinate amounts of time dealing with all of this, which was time they could have been spending on more productive tasks,” Ahmed says.


Believing that there had to be a better way to handle receivables processing and collections, Ahmed met with Cadence Bank Treasury Management Specialist Mallory Shary. “I immediately realized that receivables lockbox would be the perfect solution for this client,” Shary says.


Implementing receivables lockbox


Ahmed says that NCP implemented receivables lockbox from Cadence Bank last summer, soon after her meeting with Shary. “This is one of the best moves we’ve ever made for our company,” she says.


Instead of patients mailing checks to individual NCP locations, checks are sent to a special post office box that’s printed on the patient statement. This PO box is monitored closely by Cadence Bank, which collects checks at frequent intervals throughout the day. Checks are then deposited with same-day ledger credit to meet early check-processing deadlines.


“Our cash flow has improved considerably since we started using receivables lockbox,” Ahmed says. “And our accounting employees have been freed up from having to spend time on manual data entry and check processing tasks, which wasn’t a good use of their time or talents.”


Receivables management and improved cash flow


Another benefit of using receivables lockbox is the improved visibility that the company’s headquarters in Houston and central billing office in Arizona have into the company’s receivables and cash position.


“Accounting employees in both locations can use the AllegroSM online banking portal to view our cash position at any time,” Ahmed explains. “Everybody is looking at the same data now.”


Using the Allegro portal, staff in NCP headquarters and the central billing office can view deposits by location in a consolidated seven-year archive. All checks and remittance information are scanned, digitized and stored in Allegro, which maximizes visibility of receivables across the company.


NCP locations use Remote Deposit Capture in conjunction with lockbox services to deposit checks that patients write at facilities at the time of service. “We don’t receive very many checks this way, but using Remote Deposit Capture makes it easy to get the checks we do receive deposited quickly and efficiently,” Ahmed says.


Implementation of lockbox services


Ahmed says this was the first time she was involved in the implementation of receivables lockbox, so she wasn’t sure what to expect.


“The initial setup was a breeze,” she says. “Mallory and the Cadence Bank treasury management team were there every step of the way. They explained everything to us thoroughly and answered all our questions in a timely manner. We couldn’t have been more pleased with the service we received from Cadence Bank.”


Ahmed was also pleasantly surprised at how quickly the central billing office was able to get up and running with receivables lockbox. “The training was comprehensive and they acclimated to the change very quickly,” she says.


“It’s all about communication, which is a two-way street,” Shary adds. “Sabeen and her team were also very responsive to our questions, which made the implementation process go smoothly.”


If you would like to learn more about how using receivables lockbox can help your business improve efficiency and boost cash flow, please contact us. You can also download our free ebook, “How Does Lockbox for Accounts Receivable Work? A Guide for Middle Market Companies.”


This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

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