Marissa Nicholson, Certified Life Coach and Executive Dental Coach
Marissa has been in dentistry for over 20 years. Utilizing her clinical knowledge and leadership skills, she earned a position as a regional trainer and eventually a regional manager for a large dental service organization. This eventually led her to being a dental consultant for general and specialty practices all over the country.
Chris Hammelev, RDH
Chris Hammelev has enjoyed being a hygienist for over 32 years, but has also been a very successful treatment coordinator as well as office manager. She is a member of the ADHA, AOSH, and ALD. Chris has lead outstanding hygiene teams across the country for the last 19 years and has created custom periodontal programs for each of her offices.
Understanding the Risk of Embezzlement
Protect your dental practice from thieves. As shocking as it sounds, dental practices are incredibly susceptible to embezzlement, with as many as 85% experiencing some form of theft. Recently, I sat down with two of my dental besties, Marissa Nicholson and Chris Hammelev, who co-own the Dental Practice Management Agency, to discuss this critical yet often overlooked issue.
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The Real-Life Impact
In our latest episode, we talked about how dental teams can prevent theft and safeguard their practices. Embezzlement isn’t a subject we enjoy talking about, but addressing it proactively is vital. Marissa, a certified strategic intervention life coach, and Chris, a hygienist with over three decades of experience, discovered the urgency of this issue firsthand when they found suspicious financial activities occurring within practices they supported.
Initially, Chris and Marissa weren’t seeking to specialize in embezzlement, but after discovering problems in eight different client practices, it became clear that something significant needed to change. Protect your practice from thieves … it’s a message worth repeating because practices often overlook simple safeguards that could save thousands of dollars and considerable heartache.
How Embezzlement Can Occur
One startling discovery shared by Marissa involved a practice manager whose account records looked textbook-perfect. Upon deeper inspection using Dental Intel, Marissa discovered alarming discrepancies hidden behind meticulous accounting records. “This was happening right under our own noses,” Marissa noted, emphasizing the importance of routine, detailed checks.
Removing Emotional Barriers
A significant takeaway from our conversation was the importance of removing emotions from the equation. Dental practices often feel personal, like family businesses. Consequently, confronting a trusted team member about theft becomes profoundly uncomfortable. But as Marissa and Chris highlighted, many instances of embezzlement are perpetrated by long-standing, trusted employees, including spouses and close relatives. The emotional aspect makes detection harder but not impossible. Protect your practice from thieves by regularly examining financial reports, adjustment entries, and audit trails to spot inconsistencies early.
Immediate Actionable Strategies
We also talked extensively about specific strategies practices can implement immediately. First, clarify and specify adjustment types in your Dentrix software. Vague categories like “miscellaneous adjustments” are red flags and can obscure inappropriate activities. Detailed adjustments, clearly labelled by insurance providers or specific categories like employee discounts, make it easier to identify anomalies quickly.
Second, limiting administrative rights is crucial. We discussed a case where an insurance coordinator exploited her admin privileges to repeatedly alter day sheets, significantly impacting the practice’s financial records. Practices should ensure that admin rights and password access are strictly controlled and regularly monitored to prevent such breaches.
Cross-Training to Prevent Fraud
Additionally, Marissa suggested employing multiple people to manage financial transactions. A single individual controlling the flow of money, both incoming and outgoing, is a recipe for potential theft. Cross-training staff ensures no one person becomes indispensable, significantly reducing the risk of embezzlement.
Creating Transparency and Accountability
Protect your dental practice from thieves by creating a culture of transparency and verification. Marissa recommends clearly communicating to your team that adjustments and financial activities are routinely monitored. Knowing they’re being observed significantly reduces any temptation for dishonest actions.
Continuous Education and Vigilance
Ultimately, Chris and Marissa underscore the need for continual education and awareness. Dentistry is unique in its vulnerability due to complex financial operations that many practice owners are untrained to manage effectively. By investing in proper training, establishing clear procedures, and proactively monitoring activities, practices can substantially reduce their risk.
Protect your practice from thieves, not by being suspicious, but by being smart, vigilant, and prepared. Your business deserves no less.
