Even in larger healthcare institutions, budgets can often be tight. In order to give patients the best possible care, finances must be carefully managed to ensure that resources are being allocated effectively. When misappropriation occurs, it can have a major impact on an organization’s ability to fulfill its duties.
According to the South Florida Business Journal, Kathryn Abbate, the former CEO of the Miami Beach Community Health Center, was sentenced to six years in prison for to funds without authorization, including issuing checks to herself for “community development” and approving herself for vacation pay she had not accrued.
The news provider added that in order to mask the thefts, Abbate provided auditors with false documentation.
While these crimes may seem severe, they are not rare in the medical industry, Fierce Practice Management noted. The source explained that there are three primary sources of fraud in healthcare, including payroll schemes, fake vendor payments and cash thefts. These issues may be preventable through closer management of accounts and frequent use of audit solutions to verify records.