According to Pat Little, D.D.S., F.A.G.D., C.F.E., embezzlement can affect between 3 and 5 percent of a dental practice’s revenue. Little knows a thing or two about that, and he has dedicated himself to helping dentists avoid pitfalls that can lead to fraud and embezzlement. Unfortunately, when it comes to dental practice embezzlement, it’s often more senior employees that you need to keep an eye one, Little says.
PUBLISHED: Thursday, April 20, 2017
Pat Little, D.D.S., F.A.G.D., C.F.E., knows something about promotion. That was the biggest challenge he faced early in his career when launching two dental practices from scratch.
“How do you let people know that you’re out there and available,” Little recalls thinking.
Having been raised in a small town, Little looked to establish his practices in similar Georgia locations. And in small towns, word travels quickly.
“It would have been much more difficult if I tried to do that in a large city,” he acknowledges. “But I didn’t want to buy a practice and go immediately into debt. I just felt more comfortable building something on my own.”
When Little had to discontinue clinical dentistry due to disability, he enrolled at Kennesaw State University where he began his accounting and general business education. He goal was to become a dental CPA. But after working in public accounting, he decided it wasn’t the field for him.
“I didn’t like taxes and all the things that go with public accounting,” Little says.
But when one of his clients was embezzled, it opened his eyes to the sizeable problem dental practices face. According to Little, two out of every three dental practices will experience fraud and/or embezzlement.
“As a dentist, our primary job function is providing healthcare, so we’re not trained to be business people,” Little says. “We work all day in the back treating patients, so we have to delegate a lot of our duties to someone working up front. So there’s almost a separation between the dentist and the front team member. If the right systems aren’t put into place, it opens up the door for someone to take advantage of the doctor’s trust.”
“Most embezzlers start off honest,” Little says. “Then something just happens where they take advantage of all the trust that has been placed in them.”
Little says he went to dental school to become a dentist. That was his training. When his chosen career path was no longer an option, it was a bit shocking.
“I was in my 40s at that point,” he recalls. “So I was well into my professional career. It’s always a challenge at that age to completely reverse and find something new. That was the most stressful, taking that deep breath and figuring out what to do.”
Returning to college to obtain his accounting degree at age 47 was a culture shock, Little says, adding that he was old enough to be the father of many of his classmates.