You Can Smell Embezzlement

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Several years ago, my client and I started his practice. He became very successful. He was beginning to understand the practice management portion of his office. It didn't smell right to him.

He thought one of his employees, Peg, was stealing. Before she left on maternity leave, Peg trained the new receptionist, who was inexperienced, sweet, though not too bright. When Peg was gone, the theft seemed to stop. When Peg returned, it returned. Now they were working together and the front office was not running properly.

He called me in to verify his suspicions.  The staff was told I was evaluating the efficiency of the practice. Peg was very resistant to my questions and did not like me observing her. I asked each employee to fill out a form listing all their duties. Peg was the only one who did not do it.

Over the weekend, the doctor and I were alone in the office. We went through drawers and files in the front office. We found white out in Peg's drawer, something he had forbidden months before. We also found an entire file of referred patients without appointments, a problem he thought he had corrected with Peg before she went on maternity leave.

We didn't think the new receptionist was part of the theft, since she didn't handle the money. But she was not making those appointments, probably following Peg's instructions.

Embezzlers are often insubordinate. Peg trained the new receptionist not to make the appointments which decreased the physician's income. So the amount Peg was embezzling was not as evident.

On Monday, when Peg saw what we removed from her drawer, she was smart enough to know we were on to her. She quit before we could fire her.

Lesson: A swindler plus a sweet and simple employee are a calamitous combination.


A Word of Caution:   Embezzlers make messes in other areas of the office to cover their tracks. This could be more detrimental than the amount embezzled.

Ms. Fox is available to give the following talk to your group

Protect Your Practice
How to Recognize and Prevent Embezzlement

(for Physicians only)

how employees embezzle

procedures to prevent embezzlement

what to do if you find an embezzler