Yes, even small health care practices are at risk of losing money to fraudulent activity. Fraud goes beyond Medicare, Medicaid and insurance fraud.
The problem arises in small practices when limited staff prevents a separation of duties. Too much trust and faith are put into one or two key employees. It is suggested that someone other than one individual person that writes checks and makes deposits review the bank reconciliations and review vendor payments to a list of approved vendors.
Having a fraud risk assessment performed according to the standards and practices established by the Association of Certified Fraud Examiners can significantly reduce risk to fraud losses. A periodic review of your financial control systems will help detect fraud before the losses become too great.
Once the assets are gone they are hard to recover, then only with additional expenses and disruption to the organization.