The front-office ‘skill’ that could destroy your dental practice: Fraud and embezzlement

Jean R. Patterson, CPA, CFE

 

Regardless of how skilled you are as a health-care professional, it is often your staff who keeps the patients coming back. The way patients are treated can be as important as the technical skills of the staff. But what about other front-office “skills,” ones that could destroy your practice if given the opportunity?

Because many dental offices have few front-office personnel, staff could be handling multiple functions. While this sounds like efficient use of time and reduction of payroll costs, it can be setting the stage for employee embezzlement. Embezzlement involves two stages: the theft act and the cover-up. If one person has the opportunity and skills to achieve both, the embezzlement can go undetected for months, or even years. In addition to the skills needed to perform his or her job functions, an embezzler needs persuasive skills to secure the trust of coworkers to successfully accomplish his or her goal.

It is said that all embezzlement involves the “permission” of management. This permission is granted not by commission—management does not actively participate in the act, but by omission, that is, by not taking the steps to prevent the act. Many steps can and should be taken to minimize the chance of becoming an embezzlement victim. Here are three.