{"id":23498,"date":"2023-04-01T00:00:41","date_gmt":"2023-04-01T00:00:41","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=23498"},"modified":"2023-03-29T21:10:03","modified_gmt":"2023-03-29T21:10:03","slug":"veterinary-practice-illegality-0423","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/veterinary-practice-illegality-0423\/","title":{"rendered":"Inside Illegality"},"content":{"rendered":"

Practice owner Dr. Mark Bark walks into the storage room, pulls a 25-pound bag of dog food from the shelf and says, \u201cGeorge, can you help me, please?\u201d George grabs the bag, walks to the lobby and pauses at Lauren\u2019s desk, waiting for her to issue an invoice. George looks for the client, but Lauren tells him, \u201cIt\u2019s for Dr. Bark.\u201d The practice owner waves at George to follow him to the front door and load the bag into his car.<\/p>\n

What just happened? On the surface, you might think nothing much. However, what George and Lauren witnessed was a bag of pet food leaving the hospital without an invoice. They might think nothing more of it because Dr. Bark owns the practice.<\/p>\n

A lot has been said about fraud prevention, particularly the precautions in place, but let\u2019s look at the scenario above through the eyes of a potential thief. George might be a dedicated, hard-working employee and in the 10% of the population that never steals. Yes, you read that right, 10%! The 10-10-80 fraud rule says 10% of people will never steal, 10% will look for opportunities to steal, and 80% might steal given a chance.<\/p>\n

But what if George is in the 80% club? What might cause a respected employee like him to steal? What if he needs money to support a gambling habit or another addiction? But wait a moment. The motive doesn\u2019t have to be that significant.<\/p>\n

This morning, Dr. Bark yelled at George for ruining a blood test and later gave him the evil eye for calling Mrs. Smith \u201cMrs. Jones.\u201d George is working overtime, still needs to run a few errands after work and doesn\u2019t feel appreciated today. Yet again, he\u2019s the last employee to leave the hospital. His phone beeps before he locks the door. The text reads: \u201cHey, honey, can you grab some dog food on the way home? We ran out, and I forgot to place it on the shopping list. Sorry. Thank you!\u201d<\/p>\n

George stares at the message for a minute. Should he grab a bag off the storage room shelf or buy dog food at the grocery store?<\/p>\n

\u201cIt\u2019s just one bag,\u201d he thinks. \u201cDr. Bark took one home.\u201d<\/p>\n

Internal theft can start small. And in the mind of a fraudster, small wins lead to braver acts and larger rewards.<\/p>\n

Here\u2019s what you can do to lessen the chance of falling victim to internal wrongdoing.<\/p>\n

1. Keep Accurate Records\u00a0<\/strong><\/h3>\n

Every product leaving your clinic and every service performed needs an invoice. The permission to discount prices and credit invoices should be limited to the practice owner or manager. Alternatively, make sure your practice management software assigns specific permissions to each user. Also, check discount and credit reports every week. That way, team members questioned about a discounted product or service should be able to recall the circumstances.<\/p>\n

2. Count and Double-Count<\/strong><\/h3>\n

The inventory on the shelf should match the computer records. If they disagree, the practice owner or manager should investigate and document any variances. Be visible and consistent in your inquiries.<\/p>\n

3. Stash the Cash<\/strong><\/h3>\n

Your cash register is not a piggy bank. Accumulating money in the till for a week and then making a commingled multiday bank deposit sends the message that you might not reconcile day-to-day transactions. The wrong message also is sent when money is pulled from the drawer occasionally to buy office supplies or staff lunches.<\/p>\n

Count your cash every day, preferably before the practice opens and again at the end of the day. Then, pull a report from the practice management software showing the cash collected during the day and reconcile it to the money on hand. I recommend preparing a cash deposit daily. You don\u2019t have to take the cash to the bank every day if you have a safe but do it at least weekly.<\/p>\n

4. Amass an Archive<\/strong><\/h3>\n

Some practice management software systems<\/a> allow you to \u201clock\u201d reports after an end-of-day reconciliation. Or they might permit weekly or monthly lockdowns. That way, no unauthorized person can alter old records. Consider locking your account software annually as part of the year-end closing.<\/p>\n

5. Get Personal<\/strong><\/h3>\n

Activate safeguards in your practice management software or ask your vendor how. For example, you should require every team member to use an individual login. Also, empower only a few individuals to discount, void payments, change payment types, and issue credits and refunds. Finally, don\u2019t forget to monitor adjustments regularly. Professional services are most likely to be abused since they\u2019re unlikely to trigger an inventory shortage.<\/p>\n

Let\u2019s face it, the veterinary industry is accustomed to giving free nail trims and discounting grooming services when a client is unhappy. So, be vigilant.<\/p>\n

\n

WHAT NOW?<\/strong><\/span><\/h3>\n

Almost everyone has a story to share about fraud. That\u2019s not surprising. According to an American Animal Hospital Association survey, 86% of the respondents said employees had stolen from their veterinary clinic.<\/p>\n

What if you suspect theft, fraud or embezzlement<\/a>? Here are the five steps to take:<\/p>\n