PORT TOWNSEND — Jefferson Healthcare has teamed up with First Federal for its day-to-day banking.
Hospital commissioners Wednesday voted 5-0 to transfer three depository accounts from Union Bank to First Federal and one payroll account from US Bank to First Federal, which is the only locally owned community bank on the North Olympic Peninsula.
“First Federal has a history of giving back to the community,” Commissioner Jill Buhler said. “I really like that.”
Jefferson Healthcare will keep its relationship with Bank of America for a treasury account that is used to pay bills.
The treasury account is managed by the Jefferson County Treasurer’s Office, which deals with Bank of America.
“Taxes come to us, and we put it in their fund,” County Treasurer Judi Morris said.
Jefferson Healthcare Chief Financial Officer Hilary Whittington said it made sense to work with one bank for deposits and payroll.
“We were working with three different institutions,” she said. “We’re spending money on fees that we wouldn’t need to otherwise. We’re also manually transferring cash all of the time, which I don’t think is the safest, best or most efficient way to do things.
“We started thinking: ‘Is this the best way to do this?’”
Hospital officials began discussing the possibility of transferring the four accounts in March.
Line of credit
The conversation started when hospital officials realized they eventually would need a line of credit for capital investments such as Epic electronic medical records.
Jefferson Healthcare will be in a better position to obtain a line of credit with a stronger banking relationship, Chief Executive Officer Mike Glenn said.
Immediate benefits will include lower fees, easier transfers and the fact that First Federal has branches in Port Townsend, Sequim, Port Angeles and Forks.
“We’re asking our patients to stay here,” Whittington said. “So if we can, and the quality’s the same or better, we should stay here, too.”
First Federal commercial relationship manager Kelly Liske thanked hospital officials for choosing the Port Angeles-based institution in the public comment portion of Wednesday’s meeting.
“We understand the process you went through and appreciate your due diligence and look forward to partnering with you to hopefully make you proud and provide the services that you need,” she said.
Also in attendance was First Federal Port Townsend branch manager Laurie Liske.
“It was clear that doing business with Jefferson Healthcare was important to you,” Glenn told them. “That did not go unnoticed. We appreciate that.”
Last spring, Jefferson Healthcare officials identified First Federal and Kitsap Bank as the best options from a list of criteria.
Jefferson Healthcare’s finance committee vetted First Federal’s proposal in separate meetings and recommended the transfer.
After the meeting, Whittington said the balances in Jefferson Healthcare’s depository accounts — for patient payments and insurance payments — fluctuate from week to week but are generally no more than $2 million.
The payroll account is roughly $1.3 million per pay period, she said.
Olympic Medical Center and Forks Community Hospital already have accounts with First Federal, which opened in 1923 under the name Lincoln Savings and Loan.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rob.ollikainen@peninsuladailynews.com.