Internal Fraud in Healthcare Companies —Real-Time Threats
Internal fraud in healthcare companies is a serious threat, especially in today’s declining economy. Three examples of internal fraud in healthcare companies:
- This former Chief Financial Officer allegedly embezzled $2.97 million from his healthcare employer.
- A former payroll manager of this healthcare sentenced to five years in prison after pleading guilty to charges that he stole more than $487,000 from his employer.
- Two women pled guilty to embezzling $851,417 over a period of 5-years from this healthcare company.
Crimes such as the above can go on for months or years. Most acts of internal fraud in healthcare companies continue a minimum of 18 months—time enough to destroy or severely damage most organizations.
No matter how trustworthy you perceive your healthcare team—there is always the possibility of internal fraud in healthcare companies. Reduce your risk:
1) Recognize the Threat: Fraud and embezzlement affects all types of operations—yes, even healthcare companies. Yet, those in charge rarely consider the possibility of internal fraud in healthcare companies. Experiences show an employee who commits such crimes usually holds a position of trust, has greatest opportunity, is least suspected, and has little or no supervisory oversight.
2) Recruiting Process: Internal fraud in healthcare companies is preventable. Reduce your risk by conducting comprehensive background and credit history checks on job applicants.
3) Multiple Tasking: This area is a major risk. Reduce risk by ensuring that no one employee has the ability to affect every stage of a financial process. For example, the individual handling accounts payable should not open incoming mail or be responsible for accounts receivable.
4) Oversight: Proper oversight and monitoring help to ensure that appropriate internal controls are in place and enforced.
The above steps will help deter internal fraud in healthcare companies.
If you are serious about preventing internal fraud in healthcare companies order your copy of Business Fraud: From Trust to Betrayal today!