Medical Practices at Risk for Fraud

Given the current state of the economy fraud and embezzlement is on the rise.   Most medical practices rely on a single individual, typically a practice administrator or office manager, and do not have adequate financial controls or safeguards in place to protect the practice’s assets. Accordingly, these medical practices are susceptible to fraud, embezzlement and theft.

Internal controls have always played a strong role in preventing fraud.  Now more than ever it’s important to establish procedures in your practice that will mitigate your risk of loss.

ELLS CPAs has been engaged on numerous occasions to investigate the circumstances and damages resulting from employee fraud or embezzlement.  These cases have cost the medical practices anywhere from several thousand to over a million dollars.   Many of these frauds were perpetrated by the physician’s most trusted employee.

Don’t wait until you are a victim to take action.  We have developed a two page “Risk Assessment Checklist” that will enable us to determine many of the weaknesses you have in your practice. Once these risks are assessed by one of our Certified Fraud Examiners,  we can recommend and help you incorporate procedures and/or safeguards into your practice to lessen your risk of fraud and embezzlement.

Call ELLS CPAs today at 714.569.1000 for a Risk Assessment Checklist.

By Gregory N. Lewis