Theft and embezzlement are a sad reality that many practices face. While we may not be able to ever eliminate the problem, there are certainly things we can do to proactively prevent the mishandling of practice resources. No one wants to work with an untrustworthy team but the truth is some people lie and some people steal. It’s important to protect the business and it will require oversight even in the face of trust.

Today’s guest is John Cunnington, MBA CVPM who works as a Regional Director of Operations for VCA Hospitals. He has been in the industry for many years and is passionate about helping hospital teams reach their goals. In our conversation today, John shares examples of theft and embezzlement that he has seen and how they might have been prevented. He also explains that no matter what protections we have in place, it may still happen. What do we do in that situation? John gives a lot of great tips on how to handle this uncomfortable situation to help you be prepared for this possibility.

 

Show Notes:

[2:34] - Over the years, John has seen a lot of money stolen and when he first got into veterinary medicine, he was surprised how things like this unfold and that the culprit was often in management.

[4:18] - There are several reasons someone may decide to commit theft. Some may feel entitled to the money, some could be driven by the thrill, some find themselves in a bind.

[6:54] - Debbie shares an experience with a manager who gave herself a hefty raise without authorization.

[8:29] - John believes that when employees feel respected and are being paid a decent living wage, it could decrease the risk.

[10:20] - Being friends with your team members is fine, but it is possible to become too chummy and they may feel like they can take advantage of the relationship.

[12:10] - You don’t want just one person in charge of all tasks in a specific area. There needs to be cheques and balances.

[14:56] - Asking questions about money inconsistencies can be uncomfortable but important. People need to know that you are looking.

[16:40] - Large scale thefts and embezzlement generally start small.

[18:27] - Be prepared for these possible reactions in the conversation with a theft suspect that you are confronting. It’s important to stay calm.

[19:40] - Even if they feel that they have a reason for their action, you need to hold firm. Theft is still wrong.

[22:09] - Debbie shares an experience in knowing a theft had taken place but no one would come forward. The police were called to get to the bottom of the matter.

[24:14] - Generally speaking, stolen money is probably not going to be returned.

[25:52] - Cameras are always a good idea to have in place.

[27:45] - Employees need to know that the cameras are there for their safety as well.

[29:15] - As leaders of a practice, it all starts with a conversation. Be open about the checks and balances that are in place. 

[31:35] - VHMA had a very good webinar on preventing fraud and embezzlement by Debbie Boone in 2012. The ppt can be found on the VHMA website.

 

Thank you for listening. Remember you are not in this alone. Visit our website for more resources.

 

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