(A digest of an article appearing in the 3/3/06 issue of Medical Economics)
Ever hear a story about a "trusted employee" that stole money from a practice? Although we've all heard the stories, we also believe it could never happen to us. But how much do you really know about the background of employees who handle money, collect payments, process credit cards, prepare payroll and manage financial matters?
Here are some suggestions that will help you research the history and background of job applicants:
1. The Application. Along with basic information, request former addresses, a complete job history and any other names under which they may have worked. You can't ask about a number of items including age, height, weight, religion, marital status, personal finances or arrest record (to name a few). But you can ask if there has been a conviction for a crime or whether there are any pending felony charges. The application should require the applicant to sign a statement confirming the accuracy of data supplied on the form.
2. Getting Consent. Ask every applicant to sign a waiver allowing you to seek relevant background information รข€“ credit history, references. By making the consent form a separate document, it is easier to send to courts, credit agencies, schools and former employers.
3. Employment Checks. First ask the applicant to explain any gaps in employment. Since people may hedge their dates to cover up a job where they were fired, it is important to confirm dates of employment with prior employers. When making a phone call to a reference (preferred over mail requests), push for details about specific duties performed and quality of performance. Inquire about work habits and ability to get along with other staff and management. Ask if they would hire this person again. Read between the lines while listening. Many employers will only provide the most basic of information, but it doesn't hurt to ask for more. Sometimes they'll give it to you.
4. Personal References. Although most don't call these people, it can be worthwhile. Probe beyond vague generalities and ask questions about personal qualities, characteristics and knowledge. If an applicant offers no personal references, that could be a red flag.
5. Confirming Education. All too many applicants hedge about their education. Make sure that they took the courses and earned the degrees they've listed.
6. Check Credit History. First make sure there is a valid business reason to check this access to money, financial information, etc. If an applicant has problems with their own credit, you may not want them handling your affairs. If they are deeply in debt, it could impact work performance. You may need a specific release statement signed by the applicant to process a credit check. You should also be aware of all legal restrictions and obligations you incur if you don't hire the applicant based on their credit history e.g. a copy of the report.
7. Criminal Records. Some information may be available on the Internet sites of local, county, state and federal agencies. You usually can't ask about arrests, but felony convictions are fair game. Some areas consider minor offense and misdemeanors as off-limits. How much this information impacts your hiring decision is up to you. But, be sure to find out if they've been excluded from Medicare or Medicaid. If they have, they can't be legally involved in billings for patients under these programs. You can check this at http://www.oig.hhs.gov/fraud/exclusions.html.
8. Bonding. This is an excellent way to protect your practice against employee theft. Fidelity bonds cover those with access to cash or with responsibility for practice finances. Telling such applicants that they'll have to apply for the fidelity bond also serves as a disincentive to someone with a checkered past.
9. Document. As a protection against potential hiring claims, document every step in your background check process with names, titles, dates, notes on conversations, copies of written documents, etc. Keep such documentation in the personnel file in case of future problems or discrepancies.
For information about Fidelity Bonds or Employee Dishonesty Coverage, contact RGI Insurance Services at 1-800-852-8872 or by e-mail at info@RGIinsurance.com
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