“Make each day useful and cheerful and prove that you know the worth of time by employing it well. Then youth will be happy, old age without regret and life a beautiful success.” – Louisa Alcott
Embezzlement is a serious problem that continues to grow in the dental industry. Depending on the surveys that have been done by multiple sources, the average amount ranges from $20K -$900K. Highs into the millions have been reported. Here are some examples of how it can happen and suggestions to prevent a loss.
How it can Happen:
1. Payroll checks – hours not worked, vacation & sick days, salary increase, and/or “ghost” employee.
2. Adjustments – with payments received and/or expense items.
3. Expense reimbursement – Non-legitimate expenses
4. Patient Payments – adjusted or not entered, and checks being cashed.
5. Practice “Dummy” Account – part of checks to deposit going to a second unauthorized checking account. There are thousands of ways this can be done.
6. Cash payments – reduce the charge amount in the patient’s record but charge the accurate amount.
7. Write offs – post the charges, but keep cash.
8. Refunds – written to “fake” or “test” patients.
9. Computer – payments backdated and/or deleted.
10. Vendor/Supplier Payments – pay vendor twice and then use refund.
1. Be the Boss and owner of your practice. No one that is directly involved with your practice on a daily basis is immune to this problem. As an owner, the more involvement you have and strategic systems that are in place prohibit embezzlement.
2. Know your practice software. Reach out to a practice consulting company to show you how to engage in specific reports to ensure proper handling of adjustments, payments and credits.
3. Perform audits. Audits should be routinely done and can be password protected in the practice management software to ensure no tampering. Front office team members should not be able to run these reports.
4. Cross train employees. Make sure all front desk duties are able to be done by all of your office team.
5. Disperse duties to more than one person. Don’t let the office manger or one specific person open the mail, make the deposits, or hold petty cash.
6. All adjustments should be authorized daily by you, the owner. A report should be reviewed by the owner daily.
7. Make sure embezzlement is covered clearly in your employee handbook. If you do not have an employee handbook reach out to a consulting company right away.
8. DO NOT SHARE ADMINISTRATIVE PASSWORDS!
9. Do not have the idea or thoughts that it couldn’t happen to you. Remember over 50% of dentist are embezzled and many that were embezzled thought it would never happen to them.
10. Surround yourself with dental professionals. If you do not have a thorough monitoring system in place, talk to a consulting company to implement a monitoring system.
Disclaimer: Materials that you will read were prepared for general information purposes and are not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction. Please consult your own counsel, accountant or other advisor regarding your specific situation.
Quiz Yourself! Get a FREE CONSULTATION from a KLAS Solutions Coach!
Click on Health Quiz below.
Practices more and more are participating in managed care insurance plans, and a greater percentage of their production is coming from these plans. We recognize that if not continually managed, insurance discounts will continue to effect the bottom line. You can dramatically improve profitability by properly managing your insurance participation. KLAS Solutions, offers a thorough Insurance Analysis, along with an Insurance Maximization Plan. The Insurance Maximization Plan will help you and your practice overcome fear of patient attrition. Our plan will improve profits, and reduce the stress on you and your team. Call Kami at 844-552-7100 ext 705 or email us at firstname.lastname@example.org
2017 YEAR END SPECIAL
Insurance Maximization Plan $3995
$1000 per office (up to 3 providers) $250 per each additional provider.
This is just a short article found in Dentaltown that shows the importance of technology for your practice. Talk to KLAS Solutions coaches on how you can increase thousands of $$ by having technology systems implemented in your practice. Call 844-552-7100 or email email@example.com
KLAS Solutions wants to thank Midway Dental for another fabulous Stay, Grow, or Go seminar. Special thanks to Kami Rudolph for a fantastic presentation on how to handle PPO’s and negotiating them. Legacy Practice Transitions, Carr Realty , Doeren Mayhew, PNC Bank and Northwestern Mutual all went over all of the aspects dentists need to set in place to have or build a successful practice. To learn more email me at firstname.lastname@example.org or email@example.com.
Kami Rudolph has over 25 years of dental experience. Her expertise includes, working in practice management and development of multiple large dental groups, one of which was the first successful branded group in Las Vegas, Nevada. Kami also worked for 10 years as a private consultant and five years consulting with the highest quality cosmetic dental office in the state of Florida. In addition, she developed and taught at the community college level dental office administration and dental assisting programs for the Nevada Jobs Back to Work Program. These programs actually re-trained the long-term unemployed and successfully returned them to the workforce.
Kami enjoys working directly with Insurance Company Representatives maximizing their contract fee reimbursements. She is skilled in Fee and PPO Analysis, Credentialing, and Insurance maximization. She was invited to consult with Dr. Harry Masoth DDS, Director of Nevada Medicaid Dental Division, to revitalize the state Medicaid program and Fee structure. Kami spoke before the legislature several times representing the Head start Program on Access to Care and other important causes.
Kami served on the Board of Trustees of the following Organizations
- AMERIDENT DENTAL
- CLEAR CENTERS OF AMERICA
- THE CENTER OF POSITIVE LIVING
- THE DENTAL COALITION OF NEVADA
Kami’s vast experience and training, will enrich and enhance any size dental practice. Kami relocated to Michigan and is now the Director of Insurance Systems for KLAS Solutions. Contact Kami at 844-552-7100 x 705 or Kamala@klassolutions.com to speak with her regarding the services provided by KLAS Solutions.