Know signs of embezzlement before your cash vanishes

Practice Pointers. By Karen S. Schechter, AMNews contributor. March 19, 2007.

PRACTICE POINTERS

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Question I've heard horror stories about how physicians have had to shut down their practices because they could no longer turn a profit. The reason: A trusted employee was embezzling money. I have a great and loyal staff. However, that seems to be the same thing that these other physicians say. What precautions can I take to make sure that this situation doesn't happen to me?

Answer: First of all, most practice employees are just as you described yours: honest and loyal. The ones who are not are in the minority. However, this does not excuse you or any physician practice owner from making sure you are aware of some of the signs of embezzlement, that you implement appropriate controls and monitor staff on a regular basis.

What does an embezzler look like?

Embezzlers come in all shapes and sizes. There is no "one" particular look to them. However, there are things that you should be aware of, including positive significant lifestyle changes such as extravagant purchases and participation in more expensive activities. Some employees will cover up by attempting to "keep you totally informed all of the time," while others refuse to answer questions because "everything is under control and your job is to take care of the patients." Some employees refuse to take more than one vacation day at a time because they want you to think they are indispensable.

How can I be working harder but making less money?