Hiltz & Associates Blog
Fraud, Embezzlement and Risk in the Dental Office
Practice Management Software – Credit Balances
A credit balance on a patient’s account normally arises when a patient has prepaid for their treatment or has overpaid their balance. Sometimes in error, an insurance company will overpay, and this can also create a credit balance.
The credit balances above represent money that the practice owes to a patient or an insurance company. In essence, it is a practice liability.
Credit balances can also arise when an employee posts a “credit” to a patient’s account. Posting a credit to a patient’s account should be only done to correct for an error but sometimes employees will post credits in error or to conceal embezzlement.
If your software allows, instruct your employees to record an explanatory notation with each credit balance.
FraudBuster Frequency: Bi-weekly
Every two weeks run a report of patient credit balances. Examine the report and note any questionable entries.
Ask for an explanation for the credit balances that do not make sense to you. If the explanation is unsatisfactory, investigate further until you are satisfied.
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