How knowledgeable are you about theft inside medical practices — and preventing it?
This quiz is designed to get you thinking about how you can protect the money you’ve worked so hard to earn.
Embezzlement always leaves practice owners feeling violated. In some cases, when the amounts are large, a practice’s profitability can even be jeopardized by an embezzler.
Take the quiz — it only takes about five minutes — and feel free to get in touch with us if you have questions about the information. We’re offering a free 15-minute call to any practice owner who takes the quiz and wants to discuss any concerns it brings to the surface.
Results
#1. True or false: Strong internal controls can completely eliminate embezzlement risk.
Internal controls may substantially reduce embezzlement risk. It’s also true, though, that new ways to embezzle emerge from time to time. That’s why internal controls should be combined with periodic, undisclosed audits of practice finances.
#2. True or false: The most loyal and hard-working people on staff are unlikely to embezzle.
Unfortunately, trust creates opportunity for embezzlers. Some embezzlers cultivate trust in order to gain access or evade detection. A trusted employee may one day be tempted to steal if their personal circumstances change.
#3. True or false: Cash is the single most important thing to monitor to prevent embezzlement.
While cash may be the easiest to pilfer, eliminating cash payments at your practice won’t embezzlement-proof your business.
Payroll, credit card processes, checks, and even medical claims can be targets of employees determined to steal from your practice.
#4. A practice can reduce the risk of embezzlement by:
Select all that apply:
All of the suggested steps are helpful for reducing the risk of financial loss due to theft.
Several of these ideas also improve your workflows and make it more likely that you’ll get paid promptly. Win-win!
With respect to virtual credit cards, these may be vulnerable to theft–and they carry fees, too. Payers are required to reimburse you via EFT if you ask (per HIPAA from many years ago now). Don’t let theft OR unnecessary fees cut into your reimbursements.
#5. True or false: Separation of duties can reduce the risk of check loss or theft if your practice receives a lot of check payments by mail.
If your practice receives a lot of checks by mail, your first step should be to ask why that is happening.
If the checks are from payers, you can and should ask those payers to switch to EFT. You’ll get paid faster with less risk of loss, and the ERAs will be easier for your billers to keep up with, improving your recordkeeping.
If the checks are primarily from patients, consider adopting a payment portal. The need to send a check has become a significant drag on patient payments. Few people still rely on checks and the mail to make their regular payments–if you require patients to pay that way, you’re asking them to take extra steps outside of their normal workflow.
Additionally, every day between when the patient sends the check and when you cash it increases the risk of that check bouncing.
For the checks in the mail you can’t avoid, separation of duties can be helpful. One person opens the mail and photocopies checks and EOBs; a different person posts (or sends to billing); an owner makes deposits as soon as possible.
Important: all claims from patients that statements include amounts they’ve already paid by check should be investigated carefully and promptly.
#6. Which of the following can reduce the risk of embezzlement?
Select all that apply:
All of these items can help prevent some known forms of embezzlement.
#7. True or false: Regularly scheduled audits prevent and detect embezzlement.
All types of audits can be useful in detecting and discouraging embezzlement, but random (and, especially, undisclosed) audits are more effective at catching it. Regularly scheduled audits, if carefully and thoroughly executed, may help deter embezzling.
#8. True or false: Embezzlers are motivated mainly by jealousy or resentment of physicians’ incomes.
Some embezzlers may indeed by motivated by jealousy or resentment. (Some convicted embezzlers have revealed that they believe their physician victims owe their success to the embezzler.)
But there are other significant reasons why people embezzle. Drug, gambling, or other addictions can lead otherwise honest people into financial trouble, and embezzlement can become a crime of desperation. Some embezzlers lack a moral compass and steal simply because they see an opportunity. Others rationalize their behavior in different ways.
#9. True or false: Although physicians are often reluctant to speak about their experiences, embezzling is common in medical practices and many physicians and administrators have been victims.
Sadly, this is true. If you think you’ve been victimized, don’t hesitate to seek professional help. While you might have been able to make the embezzler’s theft more difficult, the decision to steal was theirs alone–don’t let embarrassment keep you from seeking support and moving forward productively.
#10. True or false: Some embezzlers are serial offenders who will jump from practice to practice until they are caught; others are employees who never stole before, but give in to temptation and continue stealing when they are not caught.
Some embezzlers “go pro” if they’re not caught (or manage to skip away before they are). Others never intended to become thieves but found temptation too irresistible.
Seeking references may help you avoid trouble when hiring employees who’ll have access to your revenues. While some previous employers may be reluctant to discuss any details, many will answer a question like “Is Jane eligible for rehire at your practice?” Ineligibility for rehire at a prior employer is a red flag, particularly if you have other reasons to doubt the candidate’s suitability or character.
About the Author: Morgan
