Doctor refuses to rehire sister at family practice after $40k billing mistake, parents insist she stays: 'We had to write off the balances for all the patients we saw'

Author image for Isabella Penn
Isabella Penn
Oct 2, 2025 10:00 PM EDT

Family businesses can be a blessing or a curse, depending on how much you trust the people you're working with. One medical professional recently shared how her sister's mistakes nearly sank the family practice that her father started more than 50 years ago.

For years, the sister handled billing and insurance claims. But when Medicare payments mysteriously stopped coming in, the truth came out that she had ignored three separate emails requesting updated information. This led to six months of unpaid claims, and about $40,000 had to be written off. Later, it came out that this wasn't a one-time error. Instead of re-filing or chasing down unpaid claims, the sister had been quietly writing them off so the books looked balanced when they weren't.

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  • The situation was complicated further by her declining health. After a serious illness on top of MS, she returned to work, only for the family to insist she keep her role despite her track record. The doctor wanted to fire her, but their parents refused, knowing full ownership would mean the end of her sister’s job.

    So now the question is less about medicine and more about loyalty: should family ties outweigh a $40,000 mistake?

  • Cheezburger Image 10560278272
    via Getty Images For Unsplash+

  • "AITA for not wanting to rehire my sister after she cost my practice $40,000?"

    This is kind of long so bear with me; also, throwaway account. I am a medical professional and joined my dad's practice 20 years ago.
    via Odd-Natural3570
  • Currently, the practice has been opened 51 years (not really important but kind of cool.) My sister, T, joined the practice the same time I did and started doing all of our insurance and patient billing.
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  • She has MS and her symptoms like memory loss and anxiety have gotten worse over the last few years.
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  • My dad went part time about 8 years ago so I've been running the practice; meeting with the consultants, monitoring the P&L, keeping our cost down, etc.
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  • In August of last year, I noticed that we weren't having as much money coming in.
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  • I couldn't figure it out because I was seeing plenty of patients. I went searching through everything and found out that we weren't getting paid by Medicare.
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  • I told T to figure out what was going on. She came back to me and said that we were kicked off of Medicare because we didn't respond to emails for some info.
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  • She swears up and down that she didn't get any emails. So we had to re-credential with Medicare.
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  • That took about 45 days. When we got the info back Medicare said that we weren't getting paid for May through November.
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  • We had to write off the balances for all the patients we saw then to the tune of $40,000!
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  • We appealed to Medicare and they sent us a statement of what had happened on their end.
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  • T ignored three emails with requests for updated information. Fast forward to today (sorry it's so long).
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  • T was very sick with shingles meningitis in July. She was hospitalized for 9 days. It was really serious, we thought she was going to di_.
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  • She had to have 21 days of acyclovir by IV around the clock. She had issues walking and one side of her face is permanently paralyzed causing speech issues.
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  • I honestly didn't think she would come back to work. She has long term and short term dis lity and I really thought with this illness and her MS she would stay at home.
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  • While she was gone I uncovered a whole lot of info about our insurance and patient billing.
    via Odd-Natural3570
  • INSURANCE POLICY TERMS AND CONDITIONS T NOE UNITED OFAME wing will er they ghout this any Policy caused 2. Flood Exc hereunder, includ number and the item individually amendment to Q WB 51621676B Your and AS side 100 either by way o Your circumsta You will have laim. For three main Ex standard Excess this Policy unless noted next to the co
    via Vlad Deep For Unsplash+
  • If the insurance didn't pay, she would write off the balances instead of following up to get the info she needed to refile the claim.
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  • She never sent statements to the patients, just wrote off anything over 90 days so it looked like we were getting paid when we weren't.
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  • When she said she was coming back I told my parents that I didn't want her back because she lied about everything and cost us a lot of money.
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  • They said she's family and she couldn't get a job anywhere else, so she gets to come back to work and I have to over see all the insurance billing to make sure there aren't any mistakes; like I have the time for that with the 30- 35 patients I see in a day.
    via Odd-Natural3570
  • I have another staff member doing it now but she doesn't want to continue because she knows T will make the front desk a toxic area.
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  • Also, my parents are hemming and hawing on selling me the practice because they know if I own it I'll fire her.
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  • I'm fed up and frustrated the whole situation and I just want to quit but I've got 20 years here and I love my patients.
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  • AITA for not wanting to rehire my sister? Edit: wow guys, thanks for the responses. I had to step away to see patients, but let's see if I can clear up some things.
    via Odd-Natural3570
  • 1. My sister cannot own the practice; in my state medical professionals cannot work for non-medical professionals.
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  • The big corporations get around this by hiring a medical professional in a similar field and put them on the board.
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  • 2. I can't start my own practice. Trust me, I would if I could. I'm a single parent.
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  • Opening up a new practice right now is horribly expensive and I won't see profits from it for about two years.
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  • If I had a spouse we'd have a salary to fall back on while I work part time at another practice until mine takes off.
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  • I just can't risk it with my child. 3. I think part of the problem is that my dad isn't ready to sell something that he's worked on for 50 years.
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  • I may be naive, but I think he's having a hard time letting go. The plan was always for me to buy the practice.
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  • When it was theoretical he didn't have to face it, now he does. That doesn't excuse his attitude right now though.
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  • 4. We have a meeting in a few days to address these problems. I think if my parents don't listen I'm just going to wash my hands of the whole thing.
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  • I won't abandon my patients, but neither will I continue to run the practice. My dad can come back in and run things.
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  • One of two things will happen; it will either get run into the ground and I can buy it cheap or he'll find an unsuspecting new grad who doesn't know how to read a P&L and sell it to them.
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  • At that point I'll leave for another office and take my patients with me.
    via Odd-Natural3570

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patient family drama insurance fired siblings work the doctor parenting Office medical practice
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