PR works the front desk. She checks people in and collects copays at a geriatrics office. She is always pleasant, and the patients love her. She is one of the least well-compensated people in the office and has thousands of dollars pass through her hands every day. As a single mom, she has trouble making ends meet.
The opportunity to justify giving oneself a little extra cash that no one will miss can be overwhelming.
At first, PR would overcharge a deductible slightly. Then, she would write off a copay. Before she knew it, she was doubling her salary. Even so, this amount was easily overlooked in the financial noise of a busy practice. Eventually, the scheme was uncovered when the practice had an outside audit for a different problem.
Although PR was fired and restitution was ordered, the practice was never repaid the amounts stolen. In most cases, the practice gets no restitution and if it does, it may only recoup a fraction of what was taken. Even worse is that the impact on morale and trust will linger for years. Review our Red Flag Checklist Do You Have an Employee at Risk for Embezzlement.
Diagnosis:
Medical practice embezzlement
Recommendations:
- Remember to Trust but Verify—especially for employees with access to money and financial processes
- Consider video recording of all areas where cash transactions occur
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