| The medical industry is not immune to | | | | - Monitor financial statements, records and |
| embezzlement, but many are in denial that it could | | | | documents on a regular basis. |
| happen to them. According to the Southern | | | | - Collect and open your mail prior to distribution, |
| California Medical Association, the average amount | | | | do not delegate. |
| embezzled from a physician is $106,000. What's | | | | - When it comes to handling of money, check |
| even more startling is that over 80% of all | | | | writing, account balancing, split the duties amongst |
| medical practices will experience embezzlement | | | | two or more people. |
| over a five year time period. | | | | - Avoid signature stamps and not securing your |
| The sad fact is that the more you trust an | | | | blank checks. |
| employee, the greater your potential for theft. | | | | - Eliminate business credit cards and instead |
| According to the Association of Certified Fraud | | | | reimburse business expenses directly. |
| Examiners, the potential thief often appears to be | | | | - Make it mandatory that employees take |
| your most honest, loyal and dedicated employee. | | | | vacations and have others take over their duties |
| Studies show that more than a third of | | | | while away from the office. |
| embezzlers have been employed by the business | | | | - Additionally, there are actions that can be taken |
| for over ten years. | | | | relating to your employees - new and old: |
| The most common reason for embezzlement | | | | - Always order background and credit checks of |
| seems to be simple greed. The employee feels a | | | | new employees, as well as verifying references |
| need to improve his or her lifestyle, coupled with | | | | and professional credentials. (Most embezzlers |
| a vague dissatisfaction over their financial | | | | continue to work within the same industry.) |
| remuneration. Other causes can include | | | | - Consider a fidelity bond to provides |
| unexpected financial distress, divorce, extramarital | | | | reimbursement coverage for money or property |
| affairs, high medical bills, living beyond their means, | | | | lost due to dishonest acts of its "bonded" |
| addictions, financial losses (e.g. stock market), and | | | | employees. (Make sure there is a broad definition |
| credit problems. | | | | of employee to include temporary help, partners |
| Many embezzlers plan to pay the money back as | | | | and officers of the corporation.) |
| soon as their problem improves. However, the | | | | When a theft is discovered, a business may want |
| improvement seldom happens, the problems | | | | to "sweep it under the rug" to avoid publicity or |
| continue and the thefts continue to spiral out of | | | | because of "history" with the culprit. You need to |
| control. Others feel that they are smarter than | | | | move beyond such feelings of discomfort and |
| everyone else and will never get caught. An initial | | | | report the crime to the proper legal authorities. |
| period of successfully avoiding discovery tends to | | | | Aside from serving as a general deterrent (you |
| reinforce that feeling and embolden the embezzler. | | | | will prosecute thieves), your insurance company |
| Most embezzlers are caught by circumstance: | | | | may not cover the loss unless it is reported to |
| - Discrepancies are found when illness, vacation or | | | | law enforcement. Additionally, bringing the thief to |
| family emergency take them away from their | | | | justice will help to assuage the victimization of |
| job. | | | | colleagues, vendors, patients and employees who |
| - A vendor calls to question a payment. | | | | were duped by the fraudster. |
| - A patient calls to question a bill that had already | | | | Remember that implementation of internal |
| been paid. | | | | controls, vigilant oversight, split-duties, common |
| - Suddenly funds are not sufficient in a given | | | | sense and proper insurance/bonding will go a long |
| account to cover checks. | | | | way in protecting your practice from crime. Your |
| Recognizing those primary sources of discovery, | | | | accountant and your insurance agent are good |
| there are some actions that a practice can take | | | | resources for policies and procedures to help |
| for protection: | | | | manage this internal risk. |