Certain findings are associated with an increased risk of employee theft from a medical practice. Failure to identify and respond to these findings can make a practice vulnerable to financial loss.
Employee resentment:
(1) resentment because of perceived grievance (lack of respect, unfair handling)
(2) resentment because of perceived poor compensation
Operational failures:
(1) failure to conduct background checks on employees
(2) failure to carry employee dishonesty insurance on employees who handle money
(3) failure to have a strong system of internal controls
(4) failure to periodically (at least annually) review internal processes
(5) failure to have an independent CPA audit and review process controls
Lack of oversight in financial matters or inventory:
(1) only one person makes bank deposits and posts collections from patients
(2) someone other than a physician member of the practice can authorize checks
(3) only one person with exclusive control of bookkeeping functions
(4) only one person with exclusive control of inventory
Suspicions:
(1) higher costs than can be explained by practice requirements
(2) unexpected shortages in inventory that cannot be explained
(3) unwillingness/resistance on the part of an employee to have work reviewed
The presence of one or more of these risk factors may indicate an increased risk for employee-related theft and should prompt corrective action.
Limitations:
• Physician partners in a group may be involved in theft.
• More than one employee may work in collusion.
