Cardiology Medical Group has implemented the following internal controls to protect it from revenue loss and potential employee embezzlement:
1. Divide job responsibilities. Dividing the two duties prevents an employee from stealing money from the practice and then manipulating patients’ accounts in the computer, usually by writing off balances as contractual adjustments or bad debts.
2. Require mandatory consent of the physician for write-offs.
3. Reconcile office visit payments received during the day from patients to source documents.
4. Prenumber all patients encounter forms, or Superbills, and make sure they are accounted for daily.
5. Monitor contractual adjustments for reasonableness.
6. Limit check-signing authority to the physician.
7. Attach a vendor invoice to each check when it is signed.