Case Study: Mayfair for Island Health Care

How Island Health Care earns 5.02% APY² on idle cash with Mayfair

With interest earnings from their Mayfair cash account, Island Health Care can recruit more medical professionals to provide for the local community.

  • 100% of cash FDIC insured¹ 

  • Earning 5.02% APY² on idle cash

  • Saving 250+ hours annually on manual cash management

“Mayfair is a way to generate revenue without incurring risk, or even needing much staff involvement. It’s an opportunity to grow our revenue, and that’s something we can share with others.” ­

- Shimul Mehta, CFO at Island Health Care

About

Island Health Care’s† mission is to ensure all Martha’s Vineyard residents, regardless of income or insurance status, have access to high-quality health care. Despite Martha’s Vineyard’s reputation as a vacation community, its year-round population has limited access to medical providers. Island Health Care is proud to be part of a national system of health centers with common patient-centered standards, goals, and performance requirements. 

Company profile

  • Founded 2004

  • 100% of cash held with Mayfair

  • Healthcare Nonprofit

  • United States 

Challenge

IHC needed interest earnings, but couldn’t take risks with restricted government funding 

Island Health Care (IHC) runs on primarily government funding, which is subject to strict regulations. Often, grants are awarded for specific programs, and can only be spent on approved costs. 

Because of this funding model, as much as $500-750k can sit dormant in IHC’s account for months. However, at any given moment, the nonprofit needs immediate access to capital for operating expenses like payroll.

In either case, Island Health Care has a low capacity for risk. Stakeholders have already approved program budgets, so the nonprofit cannot afford to lose even 1% of its capital, nor can it lock away funds in set-term investments. 

While risk-averse to potential losses, gains from interest can have an outsize impact. That’s why Shimul Mehta, Chief Financial Officer at Island Health Care, needed to find a way to maximize the purchasing power of IHC’s cash. Due to the size and geographic isolation of Martha’s Vineyard, there were no viable local solutions. Merely transferring funds at a local bank requires Mehta to personally visit a branch and sign paperwork. Given the circumstances, Mehta knew he’d have to look elsewhere for a cash management partner. 

“Like any other nonprofit, IHC has a very low threshold for risk. But even a 1-2% increase in interest rates can make a huge difference in potential impact.”

- Shimul Mehta

Solution

Mayfair’s cash management platform increased purchasing power

Thanks to prior work with other nonprofits, Mehta was already familiar with the benefits the Mayfair platform could offer. When he proposed working with Mayfair, Mehta got near-instant buy-in from Island Health Care’s CEO and board of directors. “It was a no-brainer,” he recalls. “As soon as I mentioned the interest rates, they were on board.”

The IHC team found Mayfair’s platform seamless to set up, and even easier to use. “Our CEO was able to take part in onboarding—I didn’t have to walk her through a thing,” recalls Mehta. “Now she’s always in the loop, getting notifications from Mayfair.”

With the interest generated from Mayfair’s platform, IHC can boost its recruiting efforts. Affordable housing can be scarce in Martha’s Vineyard, but IHC wanted to be able to provide housing to new doctors. There is no government funding to achieve this goal, but because IHC holds cash with Mayfair’s platform bank partners, it can use interest earnings from its Mayfair cash account to pay for well-priced accommodations.

Island Health Care is now able to include affordable housing as part of their compensation package for new doctors that they wouldn’t otherwise be able to afford. The result? IHC can hire more medical professionals and Martha’s Vineyard residents get better healthcare, faster.

“The best part of Mayfair is just not having to manage it so much. It’s set it and forget it—plus the ease and speed of transferring funds.”

- Shimul Mehta

Results

With Mayfair, IHC earns 5.02% APY and saves 250+ hours a year

Mayfair is freeing up time—and generating income—for Island Health Care to re-invest into its community. Using Mayfair’s platform gives Island Health Care access to strategic treasury management far beyond what is usually available to a nonprofit its size. 

The results so far include:

  • Earning 5.02% APY

  • Saving 250+ hours per year on cash management

  • Keeping 100% of cash FDIC insured¹ 

The integration of Mayfair’s platform makes life easier for Mehta and his team, but more importantly, it helps Martha’s Vineyard residents get access to better medical care.

“Many small organizations don't have a dedicated treasury position. Things move fast, and they’re juggling a lot. Mayfair can make those jobs so much easier, allowing us to serve our populations better.”

- Shimul Mehta

†https://www.ihimv.org/

¹ Mayfair is not a FDIC-insured depository institution and FDIC insurance only applies to the failure of the bank where your account is maintained. Customers who wish to opt into the Enhanced Deposit Protection Program must choose an account provided by Third Coast Bank SSB, and will have their funds placed into deposit accounts across a network of FDIC-insured banks for up to the current standard maximum deposit insurance of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this deposit placement process. View the Participating Institution List for a list of the banks and savings associations with which Mayfair and Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed, subject to the Terms of Service and any opt-outs by Third Coast Bank SSB or you. The maximum amount of possible FDIC insurance on your funds through your account is $50 million (per depositor per ownership category), subject to change at any time pursuant to applicable law. Terms and restrictions apply.

² Annual percentage yield (APY) on your Third Coast Bank SSB account is 4.72% effective as of Jul 27, 2023 and may change at any time, before or after the account is opened. Rates will vary based upon prevailing economic and business conditions.

Mayfair is a financial technology company, not a depository institution, bank or credit union. Banking services provided by Third Coast Bank SSB, Member FDIC.