Physicians and Dentists spend years in school dedicating their lives to the health of their patients.  For many, this evolves into owning their own practice or being members of partial owner-medical groups. What many medical specialists (not limited to doctors and dentist) are reluctant to admit, is that while spending years in school to become that specialist, they spend very little time learning to become small business owners.

Ultimately, this lack of business experience and training does not prepare them to fully operate and control a functioning business.  These factors place the physician and their practice at a high risk of experiencing embezzlement at least once, or and in many cases several times during the history of their practice.

You would be shocked to see the incidence of fraud and embezzlement happening right now in the United States. Recent statistics reflect that 10% of the nation’s healthcare costs are lost through fraud.  According to a reputable study by Frost & Company, CPA & CVA, Embezzlement will affect at least 80% of all medical practices! Of those who commit embezzlement in medical practice, it is estimated that 70% have committed embezzlement with previous medical practice.

Here is why this is happening:  The average medical facility or office is made up of a group of individuals who are close. These folks become close with each other and their physicians.  Due to the closeness to one-another, a heightened sense of trust and lack of control begin to take place.  When this is mixed with daily flow of cash, checks, electronic transactions and free reign, the practice is susceptible to embezzlement.

In-office problems contribute too. A silent clash in personalities, a doctor with a blunt communication style, the medical office accountant knowing how much the doctors earn, seeing doctors tap into petty cash without proper accounting—these all create a “sense of entitlement”.  Once the door has been opened, the average medical office loses over $250,000 per embezzlement case.

Don’t wait until this happens to you! Let EC3 Accounting Solutions your keep your practice safe and “in-check” by conducting a monthly mini-bookkeeping audit! Our prices start at $50 per month and our service will keep your premiums low.  Call today for EC3 Accounting Solutions!