Black’s Law Dictionary defines embezzlement as “the fraudulent appropriation to his own use or benefit of property or money intrusted to him by another.” Embezzlement can occur in any business or industry, and the medical field is no exception. A study by Hiscox in 2018 revealed some disturbing trends: the average embezzlement case involved six-figure losses, and, in the medical world, 66% of those who committed embezzlement were office managers. As the owner of your own dental practice, you need to be able to count on your team and trust them. Unfortunately, not everyone has the best motives and intentions, and embezzlement could ruin your business. That’s why your dental industry experts at Bryant Consultants want to help you prevent embezzlement at your practice.
Look for warning signs
Keep an eye on the behavior of your employees. Does someone appear to be living beyond their means and spending an inordinate amount of money? Is the same front office team member always the first one to arrive and the last one to leave? Do you have an employee who stakes a territorial claim on the physical space where they work, sabotaging any attempt to help them perform their duties? If you can answer yes to any combination of these questions, it’s time to re-evaluate the policies of your practice. That leads to the next part of our guide.
Beef up your security
You can lower the risk of embezzlement in your practice by putting the proper procedures and safeguards into place. Create unique user IDs and passwords for each member of your team, and make sure those passwords are changed often and never shared among employees. Never let any employee have access to your signature in a signature stamp. If certain members of your team resist the implementation of protocols like this, that is also a cause for concern.
Watch your accounts
Remember, you are the owner of your practice and ultimately responsible for everything that happens within your practice. That means you need to assume oversight of your financial books. Maybe that’s not a strength of yours; in that case, hire an outside consultant or a CPA to help with the financial management of your practice. Review your accounts at the end of each day. Does the deposit report match the deposit slip? Is there a written list of allowed adjustments that is understood by your entire front office team? Are you noticing that several payments are being backdated, or patient payments are being deleted? Any of these can be indicators of some form of financial misconduct.
Professional Dental Consulting
Last year created a set of unprecedented challenges for the dental industry. In 2021, Bryant Consultants wants everyone to thrive. Embezzlement could ruin everything you worked so hard to build. Don’t let it happen to you. The experts at Bryant Consultants can ensure you have the protocols and procedures in place to avoid problems of this type. We can do this as part of a comprehensive assessment of every aspect of your new practice. Start the process by scheduling your complementary consultation call today.
