Question

What types of fraud is health care management accounting most vulnerable to? What control systems are important to avoid this?

Answer 1

There are accounting fraudulent practices in the healthcare industry, these are increasing day by day. Billing errors are increasing so as the cost. Everyone has the need of healthcare service, this industry is one of the biggest industries in USA and so the fraud.

There are some common frauds in healthcare:

1. Accounting errors due to lack knowledge of accounting concepts or sometimes unintentionally.
2. Billing fraud
3. Double or over billing
4. False claim schemes
5. False expenses reimbursement

These fraud occur because of poor internal control system. These fraudulent practices can be stopped by following means:

1. Internal control system should be strong.
2. Systems should be password protected and only concerned person should be given right for knowing important information.
3. Staff should confirm with the patients that they have got services actually or not.
4. invoices should be cross checked.
5. Bills should be checked twice.