How should Saul approach the situation? 150 words, please

RESOLVING ETHICAL BUSINESS CHALLENGES* Dr. Robert Smith owned his family practice for over 20 charges to Medicaid appeared to increase, dating back years. He came from a family of success. His father was a at least five years. brain surgeon and his mother a well-known author. His Saul approached his brother. Robert, are you aware younger brother, Saul, owned his own accounting firm you charged Medicaid for Mr. and Mrs. Bennett's visits?" for several years but came to work with Dr. Smith after "Hmmm. Let me see the paperwork, Dr. Smith he sold it for a modest amount. asked. Saul handed it to him. Dr. Smith glanced at the After graduating at the top of his class from Johns document and said, Yes, they are over age 65, so I made Hopkins University, Dr. Smith was awarded a cardio a bill for Medicaid." thoracic surgery fellowship in New York. He spent But we have records they paid you with cash," a few years there and was well on his way to fulfilling Saul replied. He handed Dr. Smith an old receipt. "And his dream of becoming a heart surgeon. During this there are similar instances with some of your other time, however, his father became ill. Dr. Smith decided patients. Besides, Medicaid is for low-income patients, to return to his hometown of Zoar, Ohio, to take care not the elderly. Mr. and Mrs. Bennett are clearly not of him. Under Dr. Smith's care, his father started show low-income." ing signs of improvement. He was glad not only for his Looking a little bit flustered, Dr. Smith replied, father but that he could go back and continue his pur "Saul, you know how I am with details. I'm no good at it. suit of becoming a heart surgeon. On the day he was That's why I hired you. Thanks for catching my mistake. set to leave, his mother became ill and died a few days Dr. Smith walked back into his office and shut the door, later from a rare form of cancer that showed no symp- leaving Saul standing in the hallway with a stack of files. toms. The devastation hit the family hard. Saul was still Saul knew what his brother gave up for their family in college, and Dr. Smith's father needed someone to be and the good he did for the families in this small town, with him at all times. Dr. Smith decided to stay in Zoar but he was convinced these charges were not accidental. to take care of his father. He opened up a family practice There were too many of them and the amount of money in the town, thus putting his dream of becoming a heart charged exceeded $75,000. surgeon on hold indefinitely. "What happened to all that money?" Saul won- Over the years, Dr. Smith sometimes felt regret dered. He also wondered how to handle the situation. He that he never achieved his dream, but his job as the thought to himself, How can I report this without send- town doctor had been fulfilling. Now Saul was working ing Robert to jail? If I don't report it and Medicaid finds with him, helping with the business. This made things out, I could go to jail and lose my accounting license. significantly easier for Dr. Smith, who haphazardly This is such a small town. If anybody finds out, we'll kept his own books and patient files. One day, as Saul never live it down." At that moment, the phone rang, and organized Dr. Smith's piles of paperwork, he noticed Saul was the only one there to answer it. there were charges to Medicaid that must be a mistake. While most of the population of Zoar, Ohio, was con- sidered low-level income and qualified for Medicaid, QUESTIONS EXERCISES this was not the case for all patients. There were several 1. Describe Saul's ethical dilemma. elderly middle- and higher-income families who reg- 2. Why would Medicare fraud be a white collar crime? ularly visited the office and usually paid with a check 3. How should Saul approach the situation? or cash. Saul assumed his brother's administrative office skills were poor and aimed to fix it. However, as *This case is strictly hypothetical; any resemblance to real persons, Saul organized the paperwork and checked files, these companies, or situations is coincidental