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# MSO banking and treasury management: multi-entity accounts

Lemma was built natively for MSO-PC and DSO-PC structures, with multi-entity account hierarchies,
consolidated dashboards, automated intercompany transfers, and entity-level reconciliation that
traditional banks simply don't offer.

[Book a demo](https://calendly.com/d/ct72-djp-r7w) · [Pricing](/pricing)

## Why multi-entity banking is different

An MSO or DSO and its professional corporations are separate legal entities that share operations but
cannot share cash freely, so multi-entity separation and rule-based cash sweeps do the work a single
operating account cannot. For the full breakdown of the structure and what it demands of a bank, read
our [multi-entity banking guide](/multi-entity-banking).

- **Separate legal entities.** Each practice is a separate corporation with separate tax IDs,
  compliance obligations, and FDIC insurance needs. A single account cannot protect all entities.
- **Consolidated reporting.** You need to see cash flow across all entities simultaneously (total
  revenue, total expenses, consolidated balance sheet) while viewing each practice separately.
- **Intercompany transfers.** MSOs and DSOs sweep cash between entities for working capital, loan
  payments, or distributions. Manual transfers require multiple ACH transactions and reconciliation
  nightmares.
- **Regulatory complexity.** State healthcare laws, corporate practice of medicine restrictions, and
  payer agreements require separate accounting by entity. You can't run everything through one
  account.
- **FDIC insurance gaps.** Standard FDIC coverage is $250K per depositor per bank. An MSO or DSO with
  $5M across 5 practices exceeds this limit. Lemma's sweep network extends coverage to $10M per
  entity.

Lemma solves all five: multi-entity group native banking architecture, not a workaround.

## Lemma's multi-entity banking architecture

- **Multi-entity account structure.** Each affiliated practice gets its own bank account number,
  ACH/wire routing, lockbox address, payment posting, and FDIC insurance, all under one Lemma parent
  account, with a consolidated dashboard your CFO can drill into in real time.
- **Separate payer relationships by practice.** Some practices operate under different network
  agreements. Lemma routes payments to the correct entity's lockbox automatically: Medicare to
  Practice A, commercial to Practice B.
- **Corporate compliance documentation.** Lemma generates entity-level reconciliation statements,
  proof of funds, corporate minutes, and intercompany transfer logs for healthcare regulatory
  compliance and state annual reports.
- **Sub-entity accounting.** For MSOs and DSOs managing 3rd-party practices, Lemma allows management
  fees, service charges, and transfer pricing to flow between parent and subsidiary automatically.

## What MSOs and DSOs pay traditional banks (and shouldn't)

The true cost of traditional banking compounds across entities. Here's what a 10-practice MSO or DSO
is typically paying:

| Cost                   | Per year | Where it comes from                                                  |
| ---------------------- | -------- | -------------------------------------------------------------------- |
| ACH fees               | $6,300   | 10 practices × 150 payments/month × $0.35 = 1,500 transactions/month |
| Lost interest income   | $34,800  | $2M+ aggregate operating balance at 0.01% vs up to 1.75% APY         |
| Total unnecessary cost | $41,100+ | That could cover staff, equipment, or expansion capital              |

## Lemma vs. traditional banks for multi-entity groups

Multi-entity banking isn't a workaround at Lemma. It's the core architecture.

| Feature                          | Lemma                   | Traditional bank               | Standard business |
| -------------------------------- | ----------------------- | ------------------------------ | ----------------- |
| Multi-entity account structure   | Native, purpose-built   | Manual account management      | Not supported     |
| Consolidated dashboard           | Yes, real-time          | Requires third-party reporting | No                |
| Automated intercompany transfers | Yes, rule-based         | Manual ACH each time           | Manual only       |
| Entity-level reconciliation      | Yes, automated          | Manual by account              | —                 |
| FDIC coverage for 5 entities     | $10M+ via sweep network | Limited (unclear coverage)     | $250K per account |
| Medical lockbox per entity       | Yes, separate           | Add-on service                 | Unavailable       |
| Payment posting per entity       | Yes, automated          | Manual if available            | Manual            |
| Setup time                       | 5 minutes               | 2–4 weeks                      | —                 |
| Cost                             | Free (included)         | Varies by institution          | $500–3K monthly   |

## FAQ — multi-entity banking

**Can each practice use Lemma independently, or does it have to be centralized?**

Either model works. Each practice can have its own Lemma account with independent access, or the MSO
or DSO can manage all entity accounts from a single parent dashboard. You can mix both: some
practices self-managed, others centrally controlled.

**How does FDIC insurance work with multiple entities?**

Through Lemma's sweep network, each entity is treated as a separate depositor across multiple
FDIC-member banks. This means each entity can have up to $10M in FDIC coverage independently. A
10-entity MSO or DSO has up to $100M in potential total coverage, versus $250K at a single
traditional bank.

**Can I automate intercompany transfers?**

Yes. Lemma's cash sweep rules let you configure automatic transfers between entities on a daily,
weekly, or threshold-based schedule. Funds move from PC accounts to the MSO or DSO (or vice versa)
without manual ACH initiation.

**What if one practice has a different payer mix than another?**

Each practice entity gets its own lockbox address and EFT routing numbers. You can configure
payer-specific routing per entity, so payments from different payers flow to the correct practice
account automatically.

**How does accounting work across entities?**

Lemma provides entity-level statements and a consolidated view. Intercompany transfers are logged
with full audit trails. Most MSO and DSO CFOs export this data to their accounting system
(QuickBooks, Sage, NetSuite) for consolidated bookkeeping.

**How long does it take to set up multi-entity banking?**

Each entity takes approximately 5 minutes to set up with standard business documentation. A 5-entity
group can typically be fully onboarded within a day, compared to 2–4 weeks at a traditional bank.