Response to Embezzlement #3 Post

Written by Reed Tinsley | July 6, 2005

This post has seemed to cause a little stir among the physician practice manager community. Here is a reply I recently received:

Reed,
I appreciate receiving your newsletters and I especially liked the article on employee embezzlement.  The physician has every right to be angry at the employee and to pursue legal action.
However, the comment about the office manager being stupid or lazy (may be the case), but there is another possibility.  He/she may not have adequate education, experience or training to implement strong internal controls.  Clearly from the description of their practices, there was no reconciliation occurring.  I find that many smaller practices can't afford "administrator" level management (experienced business managers) and the lack of internal controls is very common.
In those cases, responsibility lies with the physician/owners to get advice from their accountant or others who are qualified instead of pointing a finger after they have been victimized.  I think the physician's anger is misplaced as she should be taking responsibility for this occurring.  They have no one to blame but their selves.
Hope you don't mind my little rant, but comments made by physicians to "fire" everyone, when in fact the physician is mostly liable, is unfair.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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