Background Investigation Blogs

For many years, the United States government has worked diligently to protect individuals such as the elderly and those seeking patient care. The ultimate objective is to clean-up the healthcare system by identifying and eliminating fraud, waste and abuse, and providing a mechanism for audits, inspections and investigations. To that end, specific government departments and programs were born as a checks-and-balances system.

One of the primary goals of the Department of Health and Human Services, in conjunction with the Office of Inspector General (OIG) and the General Services Administration (GSA), was to create and maintain a sanction list of individuals and entities called the “List of Excluded Individuals/Entities.” OIG/GSA 101: These databases, the “sanction lists,” include individuals and businesses/entities that are excluded from participating in Medicare, Medicaid, or other federally funded healthcare programs, and have been convicted for program related fraud, patient abuse, licensing board sanctions, suspended licenses, and default on Health Education Assistance Loans. To net it out, a healthcare organization cannot do business, or be associated with, anyone or any business on these sanction lists.

For Healthcare organizations, being in federal compliance is vital, and searches on the OIG and GSA databases is mandated on a pre-employment and annual basis for every individual or entity within, or tied to, the organization. In other words, anyone working within the walls of a healthcare organization, be it employee, service firm or contractor, must be checked. If an organization has an affiliation with an individual or entity included on one of the sanction lists, they may be forced to pay back all Federal funds back to the date the individual or entity became affiliated with the organization. This could mean hundreds of thousands in lost revenue depending on the length of the violation. In addition, Civil Monetary Penalties (CMPs) of up to $10,000 per violation can also be levied. Continued violations could even mean that a healthcare organization be denied to receive any government funds from Medicare, Medicaid or any other government supplemented program, virtual putting them out of business.

The question is will OIG and GSA searches alone ensure complete compliance? The answer is two-fold: “yes” on a federal level, but “no” on a state level.

The OIG and GSA federal databases only reflect the current status of an individual or entity and provide no historical data. If there was fraudulent or criminal activity in the past with an individual or business, and the healthcare organization continued the relationship, the organization would be in jeopardy for liable and non-compliance. On a state level, most states maintain their own database with state specific sanction information that may not be updated into the OIG and GSA. These state exclusion and sanction lists pertain to state fraud, along with medical license information which may reflect a suspended or revoked license.

The only way to ensure proper compliance is to include a multi-state search, in addition to the OIG and GSA searches. Global screening firms, such as Employment Background Investigations, can provide multi-level options of screening against a comprehensive and historical database of adverse actions and sanctions, and provide batch processing and yearly program management. Enhanced due diligence and risk mitigation can only be achieved by a thorough search of both federal and multiple state databases.

Let’s review a few interesting statistics: the U.S. population is currently around 308 million people; as of 2009, 3.6% of this population (or 11.5 million) are unauthorized immigrants; 7% of the total population travels abroad each year; and 25% of international applicants lie about employment and education credentials.

When it comes to talent acquisition, hiring from overseas is healthy for diversity, and for some industries, a necessity for keeping up with industry trends and rival competition. For most hiring managers, screening potential new-hires outside of the United States or even those that have previously lived and worked abroad can be difficult due to lack of knowledge or even resources to conduct proper screening. Employers need to understand that background screening in some countries is not yet fully accepted, based on current customs or lack of screening regulations, and for some countries, not even a standard business practice.

The following guidelines will help employers navigate across these uncharted waters:
• Don’t ignore international screening just because it may be a higher cost than domestic. If your candidate has spent the better part of their life or professional career abroad, conducting an international background check makes good business sense, especially when specific credentials, specific skill sets or education levels need to be verified.
• Always inquire as to the source of the data received; develop a full understanding of what types of criminal records are received from each country; ask how they compare to felony and misdemeanor records here in the United States; and insure these records were obtained according to the legal requirements of the country.
• Always obtain a candidate’s written consent and provide a full disclosure of the nature and scope of your investigation, no matter what country you’re screening in. Always follow the FCRA when hiring someone to work in the United States, and consider other country specific laws and guidelines for obtaining screening information abroad. Country-specific privacy laws, data security regulations and third party accessibility may come into play as well.
• Outsource your international screening, especially when you need to verify candidate information such as international past employment, education, and other such information. Barriers such as language, time and dateline can be some of the hardest obstacles to overcome when conducting global screening, and add unnecessary cost and time to your company’s bottom line when you find yourself working late hours or along-side a translator to obtain and decipher information in-house.

Employment Background Investigations (EBI) has proven global screening expertise. With EBI, employers can control costs, decrease liability, provide a safer workplace and ensure the right candidate is hired for the job. EBI can advise you on what information is available in each country, if it’s legally accessible, and provide the proper forms to manage the process. EBI will only conduct international background checks where we can obtain information in a legal and ethical manner.

EBI provides resources both internally and on the ground in the country of interest to manage the screening process from start to finish no matter the time zone or language. Outsourcing all of your screening needs to EBI - domestic background investigations, global screening, drug testing, occupational healthcare and Form I-9 compliance - is an easy, cost-effective solution.

Many industries require post-hire and continual screening programs on specific employee positions based upon federal and state regulations or insurance guidelines. For example, the Department of Transportation (DOT) requires that truck drivers who hold a commercial drivers license undergo a yearly audit of their driving record, and submit to periodic random drug and alcohol testing, along with physical capabilities testing on a periodic basis for proper compliance. The Healthcare and Pharmaceutical industries are mandated to conduct re-occurring screening as part of regulatory compliance measures to receive federal and state funding. Yearly review of sanction databases, such as the Office of Inspector General (OIG) and the General Services Administration (GSA), are required to ensure that employees, contractors, and even vendors are screened for previous activities of fraud, embezzlement or other non-compliance measures.

But what if your company doesn’t fall under DOT or other requirements? If you employ individuals that drive as part of their regular job function, impose regular driving record checks. Never incur the potential liability of someone on your staff driving without a license. Remember that a criminal record search on a pre-employment basis is a must to achieve proper due diligence; however always remember that a criminal record search is perishable, and the potential for future criminal activity is always a possibility no matter the employee. Conducting an ongoing national criminal search is always a best practice on any employee. Remember that employees that conduct strenuous physical labor or heavy lifting should undergo yearly physical exams to protect their safety and may help to reduce the ever increasing worker’s compensation insurance premiums. On-going random, post accident, and for cause, drug and alcohol screening will also help keep your company free of potential safety hazards, and help identify substance abusers that add to lost production and additional safety hazards.

Employment Background Investigations (EBI) offers an entire suite of services such as monitoring commercial driver’s license status; administration of random, post accident, and for cause drug and alcohol testing; and other occupational healthcare needs. With state-of-the art screening technology and an integrated network of over 15,000 clinical locations, EBI can administer and manage all of your screening programs. It just makes sense to incorporate ongoing screening with all of your staff to enhance safety, decrease workplace risks, and ultimately reduce worker’s compensation premiums.

In May of this year, a front page news story uncovered that over 200 U.S. Army soldiers, Department of the Army civilians, and government contractors around the world had purchased fake credentials to acquire promotions, be awarded contracts, and receive substantial pay increases. With the current down economy, and the increase in job competition, exaggerating abilities and experience for employment and promotion purposes is on the rise. Here is a somber statistic for employers: over 34% of resumes include discrepancies on employment and education.

Most companies perform only pre-employment screening, and many Hiring Managers select the type of screening on a job class basis. For example, if a candidate is hired for an entry level position, only basic screening (SSN and County/State criminal check) may be conducted. And if that same employee is later considered for promotion in a higher job class or ranking, how can you ensure they have the right credentials and abilities without a more comprehensive background check and additional credentialing?

Employment Background Investigations (EBI) can verify an employee’s higher education status, credentials, technical and military service, and even conducting interviews with previous employers and supervisors. EBI can provide total confirmation of the employee’s identity by utilizing primary identifiers such as name, date of birth, SSN, and past residential movement patterns. And EBI’s employee’s credit history will provide valuable insight into current debt obligations, payment history and any potential concerns of derogatory public records information. Before a promotion is offered, an employer needs a complete picture of what the employee can bring to the new position to ensure a better fit for the job and save valuable time in re-training.

Employee theft, as quoted by the FBI, is “the fastest growing crime in America.” The U.S. Chamber of Commerce estimates that 75% of employees steal from the workplace, and most do it repeatedly. Here are a few more head spinning statistics: one third of all U.S. corporate bankruptcies are directly caused by employee theft; and reports estimate that 20% of every dollar earned by a U.S. company is lost to employee theft.

Employees with access to highly confidential information such as company trade secrets, intellectual property, sensitive corporate information, along with individuals with access to cash, valuable merchandise, or even credit card information, should undergo periodic screening.

According to previous reports released by the Bureau of Labor Statistics, over two million non-fatal incidents of workplace violence are reported each year. It’s a frightening statistic. Employers have an obligation to provide a safe environment for employees, clients, and even the general public. Ongoing screening programs should be a necessity within any organization, and even a regulatory requirement for positions dealing with safety sensitive issues.

Employers can now monitor their employees on a continual basis to minimize the potential risks of employee theft and workplace violence by incorporating a monthly scan of Employment Background Investigations’ (EBI) National Criminal Record Database (NCRD). Continuous monitoring is prudent for reducing negligent retention litigation and to enhance risk management protocols. EBI’s solution will monitor the criminal activity of employees in a real-time fashion. As criminal records are updated in the 200 million plus records database, EBI can automatically cross-reference the name, date of birth and other employee identifiers, and alert you if there are potential risks. The NCRD includes information for proper OFAC compliance, and a search of over 120 international debarment and terrorist watch lists databases.

Most companies overlook post-hire or continual screening on their staff due to two main reasons: budget constraints, and because they feel their screening needs are complete after the initial pre-hire screen. When the results are clear and the “green light” has been given to on-board that new employee, why spend the money, or the time, for additional screening?

Employers need to remember that the results of pre-employment screening only reflects information at a specific point in time – a “snapshot” if you will. Many factors about your employee’s background and personal habits can and do change over time. Future criminal activity, drug usage, a change in driver’s or professional license status, decreased credit worthiness, and change in physical condition are some of the variables that can affect an employee’s ability to fulfill their job functions and add potential safety risks and liability to you, the employer.

Over the next few weeks, we’ll dissect the compelling reasons to implement an on-going screen program within your organization:
• Reduce Theft and Workplace Violence;
• Verify employees have the skills and education for those new promotions;
• Keep DOT compliant, and keep your workplace safe;
• And adhere to Office of Inspector General (OIG) and the General Services Administration (GSA) requirements.

No matter your industry need, Employment Background Investigations (EBI) can help you reduce overall operating costs, limit potential liability, and increase workplace safety. EBI has the experience and expertise to develop an on-going screening program specifically for your company, with cost-effective, fast and compliant background screening, drug testing, occupational healthcare, and Form I-9 solutions.

Join Employment Background Investigations (EBI) for a complimentary one-hour tax incentive webinar on Thursday, December 3, 2009, 2:00pm EST, and learn about saving thousands of dollars in tax credits for your new hires.

The vast numbers of U.S. employers don’t even realize that thousands of dollars of tax credit incentives are waiting to be claimed, and only 25% ever reap the benefits! Furthermore, approximately 15% of most employers’ staff already qualifies for some type of tax credit incentive program. At maximum incentive value, employers can save $2,400 per employee that qualifies for the Worker Opportunity Tax Credit Program (WOTC). For example, if your company employs 1,000 full-time staff members, and 15% qualify for the program, you can save approximately $360,000 in one year! With just one call, EBI can do all the work so you can take advantage of all the savings today!

Along with tax credit and incentive services, EBI delivers “one stop” cutting edge screening solutions that include background investigations, drug screening, occupational healthcare, and Form I-9 compliance, all designed to take the work out of hiring.