11/8/2011 Medical Billing Made Easy™ Presents Guarding Your Revenue: How to Prevent and Uncover Embezzlement Beginning now… www.Kareo.com Today’s Program Introduction Presentation: Judy Capko Joe Capko  Kareo Special Offer: Matt Kelly, Account Executive, Kareo  Questions   Sponsored by © J. Capko | www.capko.com | 2011 3 How to Participate Today • Arrow = Open/close your panel • Questions = Submit text questions Follow-up email with video link within 24 hours Sponsored by 1 11/8/2011 About Our Speakers Judy Capko and Joe Capko are medical management consultants with over twenty five years of combined experience increasing practice profitability. Their work emphasizes the importance of building patientcentered strategies and valuing staff’s contribution. Capko & Company’s C ’ consultants l have h received i d national i l recognition, working with all types of practices, including major academic faculty practices from coast-to-coast. They are also popular writers – Judy’s best-selling book “Secrets of the Best-Run Practices” is now in its second edition. Sponsored by © J. Capko | www.capko.com | 2011 5 Guarding Your Revenue: How to Prevent and Uncover Embezzlement By Joe Capko & Judy Capko www.Capko.com Sponsored by Course Objectives Define the scope of embezzlement risk Explain the importance of tight financial reins  Identify attitudes that encourage the embezzler  Learn to spot the warning signs  Learn techniques that thwart embezzlers   Sponsored by © J. Capko | www.capko.com | 2011 7 2 11/8/2011 Embezzlers in the News Sponsored by © J. Capko | www.capko.com | 2011 8 Embezzlement Statistics 82% of respondents had been associated with a practice where theft occurred  Average loss was approximately $140,000  Most common position of embezzlers:   Receptionist (26%)  Administrator (19%)  Billing office employee (15%)  Billing office manager (9%) Source: MGMA Study, 2010 Sponsored by © J. Capko | www.capko.com | 2011 9 Embezzlement Statistics Average time to discovery 16 months Median loss $5,000 – 90% of losses are under $250,000  One third from each:    Top management  Billing  Front office Source: MGMA Study, 2010 Sponsored by © J. Capko | www.capko.com | 2011 10 3 11/8/2011 Review Financial Processes – Is Your Office EmbezzlerEmbezzler-Friendly?  Examine money management procedures  How cash is handled  Policies on records keeping  Financial guidelines  Audit processes  Check-writing  Purchasing and authorization  Adjustments Sponsored by © J. Capko | www.capko.com | 2011 11 How Embezzlers Get Started  Consider the Opportunity  I have control of the money  No one is minding the store  I have your trust (no one will ever know)  Testing the waters  Start small and build up Sponsored by © J. Capko | www.capko.com | 2011 12 How the Embezzler Works  The checking account  Gains signature rights for check-writing  Creates false invoices and payments  Gets MD signatures on checks when the MD is in a hurry      Makes account adjustments j and keeps p p patient cash payments Banks on-line and transfers funds to bogus account Charges overtime Personal purchases on office credit cards Manipulates the books Sponsored by © J. Capko | www.capko.com | 2011 13 4 11/8/2011 Warning Signs  Embezzler doesn’t take vacation  Protects own turf No one is cross-trained to manage finances in his/her absence  Change in lifestyle   Spending more and living higher  Under financial stress  Unemployed spouse, substance abuse, gambling Sponsored by © J. Capko | www.capko.com | 2011 14 Protect Practice Finances: Key Concept: Separation of Duties       Charge and payment entry Adjustments Bank deposits Purchasing Check-writing Petty cash Sponsored by © J. Capko | www.capko.com | 2011 15 Protect Practice Finances: Physician Oversight  Check account  Sign checks  Require invoice and vendor statement when signing checks  Do bank reconciliation   Establish concrete financial policies Review financial reports monthly  Spot-checking increase in expenses  Higher adjustments Sponsored by © J. Capko | www.capko.com | 2011 16 5 11/8/2011 Protect Practice Finances: Other Resources  Your CPA/Auditor  Regular audits  Consult for appropriate controls  Vendors  Practice management software vendors  Remove right to delete appointments, etc. Sponsored by © J. Capko | www.capko.com | 2011 17 Speakers Judy Capko Joe Capko Capko & Company Ph: (805) 499-9203 Email: [email protected], [email protected] Online they can be read at: www.capko.com/blog These handouts may not be reproduced without the written consent of the speakers. Sponsored by © J. Capko | www.capko.com | 2011 18 INSANELY EASY Matt Kelly Account Executive Medical Billing Made Easy™ 19 6 11/8/2011 1 2 3 Sponsored by 20 1 2 3 Sponsored by 21 1 2 3 Sponsored by 22 7 11/8/2011 1 2 3 Sponsored by 23 $0 Sponsored by 24 No N LongLong L -Term T Contracts C t t Sponsored by 25 8 11/8/2011 N Cancellation No C ll ti Penalties P lti Sponsored by 26 1 Month Free Sponsored by 27 www.kareo.com/pricing Promo Code: 1111-11CW 30 days d free f When you subscribe by Friday, November 18 Sponsored by 28 9 11/8/2011 Questions? Sponsored by 29 Thank You! www.Kareo.com Sponsored by 30 10