Medical practices have the highest embezzlement rate of any service industry. Every medical practice, regardless of size, specialty or location, is a potential victim of employee theft and embezzlement.
While we would all like to believe our employees are honest, that is not always the case. Having financial safeguards in place can help ensure you recognize warning signs and protect your practice from embezzlement.
Follow these tips to reduce your practice's risk of theft:
- Perform a criminal background and credit check on all new employees.
- Use a lockbox for petty cash.
- Record every type of transaction (e.g., write-offs, refunds, adjustments).
- Segregate duties and cross-train employees.
- Restrict signature authority on the checkbook.
- Have an annual audit by a certified public accountant or practice management consultant.
If you think your practice is at risk for employee theft, don't wait to take protective measures. Contact TMA Practice Services at (800) 523-8776 to speak with a practice management expert about your options.
TMA Practice E-tips main page
Last Updated On
November 07, 2025
Originally Published On
March 23, 2010