Optometry Coding & Billing Alert

Published on Thu May 27, 2004 PDF

Question: Do you have any recommendations for how we can protect our office against embezzlement by employees in the billing office?

Louisiana Subscriber

Answer: The key to safeguarding against embezzlement and financial errors is separation of financial duties in the billing office. Here's how:

1. Have every front-desk employee double-check their daily posted balance by having a fellow employee count all the cash and checks.
2. Make sure the employee who performs the daily close is not one of the people who post payments or the person who collects all the payments from the day.
3. In small practices with few billing staff, the office manager and/or physician should be involved in the daily finances to increase accountability. For example, the office manager and/or physician can review an end-of-day report to balance with the daily collected receipts.
4. Put controls on your practice management system so staff can log in and access only what is necessary for them to do their jobs.
5. Every computer should have a separate name and password, and staff should change passwords regularly.
6. Pay close attention to the day's voids and adjustments -- tampering with these is the easiest way to pocket a cash copay or other payment. "It is vital that the doctor and the office manager review the day's receipts and an end-of-day report," says David Gibson, OD, FAAO, of Lubbock, Texas. "Make sure employees know you are looking over their shoulders and know the system as well as -- or better than -- they do."
7. Let someone else balance the books. "I now reconcile the checkbook when the statement comes, instead of the person who makes the deposits," says Gibson. "The more people who are involved -- within limits, of course -- the less likely you are to be hit."