Why Dental Support Organizations and Multi-location Practices are Vulnerable
- It is easier for thieves to rationalize stealing from a large entity.
- The accounting split between practice management and accounting software limits the ability of accountants or auditors to find fraud.
- For DSOs experiencing rapid expansion, control systems often lag behind the growth.
- Associated dentists and complicated earnout arrangements create vulnerabilities.
- Oversight of individual practices by staff without dental backgrounds often limits their ability to monitor deceptive transactions.
- Affiliating with specialist practices can pose additional risks.
- Centralization of functions creates an additional layer of embezzlement risk.
- EBITDA-based affiliation transactions are vulnerable to manipulation.
Prosperident Can Help
As the oldest and largest company specializing in the investigation of employee theft in dental entities, Prosperident works with everyone from emerging DSOs to some of the biggest to help them achieve a higher level of protection against embezzlement. Some of the services that we provide are:
- Performing investigations on practices where specific embezzlement concerns exist.
- Conducting stealthy rotating audit programs where we review an agreed percentage of a DSO’s practices annually.
- Assisting with the development of metrics to identify at-risk practices and those selected for audits.
- Performing “affiliation audits” to protect a DSO against acquiring an embezzlement issue.
- Reviewing internal controls and the functioning of enterprise-level departments to identify vulnerabilities to embezzlement.
- Assisting with pre-purchase diligence when financial information provided by a potential affiliate dentist is under question.
Want to Talk?
If you are involved in the management or ownership of a DSO or a multi-office practice and are interested in lessening your organization’s vulnerability to embezzlement, we would love to speak with you. Click HERE to speak with our CEO, David Harris.
How Can We Help Your DSO?
Watch Prosperident team members discussing DSO embezzlement with Ken Kaufman of Community Dental Partners
To read an article about embezzlement in DSOs, click HERE.
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