Every practice has the need for pre-employment background checks for administrative staff; trust but verify. Medical practices are not immune from embezzlement and skimming by seemingly trustworthy employees. Employees also have access to patients’ credit card and other identifying information. The new Red Flag Rules issued by the FTC for businesses handling credit cards reflects the explosion in identify theft. Believe it or not, there are even been reports of employees stealing a patient’s insurance identify to obtain treatment for others.
Some of these risks can be reduced by good financial controls, but they cannot be eliminated. This is why pre-employment background checks are advisable for all jobs involving handling money, including collecting payments (cash or credit card), writing checks, depositing checks, or having access to patient identification. Employee background checks must comply with Fair Credit Reporting Act (FCRA) and state law.
How Extensive is a Pre-employment Background Check?
Background checks can be simple (calling a former employer for references) to very detailed (interviews with friends and neighbors). For a medical practice, the following is recommended:
- Former Employer Reference Check
- Criminal Record Check
- Credit Report
- Verification of Post-Secondary Education. (Even if this is not required for the job, if education is listed on the resume and it is falsified, that is a good reason not to hire.)
Do I Need to Get the Candidate’s Permission for the Background Check?
Yes. FCRA requires that permission be obtained on a separate document before the report is requested. In other words, permission can’t be requested as part of another document such as an employment application.
Should I Pay an Outside Company to Do the Background Check?
It makes sense to hire an outside company (called a consumer reporting agency) to do the background check for these positions. A reputable company will ensure that the check is complete and that legal requirements have been met.
What Should I Look for in a Credit Report?
A credit report reveals a lot about how a person handles money and also whether they have large amounts of debt, which could increase the temptation to steal from the practice.
Do I Have to Tell the Applicant if I Decide Not to Hire Based on a Credit Report?
Yes. Under FCRA, if a credit report is a factor in an employment decision, you must disclose this to the applicant. The applicant also may obtain a copy of the report. Review the Federal Trade Commission's guide: Using Consumer Reports: What Employers Need to Know.
Can I Run a Background Check on a Current Employee Without His/Her Consent?
Yes, you can run a background check on a current employee if you have suspicion of wrongdoing
Are Background Checks Expensive?
They aren’t free, but as an investment in your practice and an effective way to avoid making a bad hiring decision, they are well worth it. There are a number of options and the key is whether the company provides accurate and complete information. Investigate the reputation of the company, including with the Better Business Bureau. If a company offers to provide all the information listed above for much less than $100, there is reason to be skeptical.
Anything Else I Should Know?
You are legally obligated to “properly dispose” of background reports. This means shredding paper documents and erasing computer documents. Read more about proper disposal of background checks through FTC Issues Final Regulation on Consumer Information and Records Disposal.
Disclaimer: Information on this website does not constitute legal advice. ACFAS members should consult with their own lawyer for legal advice