Inadequate Surety Bond for Resident Funds
Penalty
Summary
The facility failed to secure a surety bond that adequately protected the personal funds of residents deposited with the facility for three consecutive months. The facility's policy, dated 7/1/24, mandates the purchase of a surety bond to safeguard residents' financial security, with an annual evaluation to ensure sufficient coverage. However, a review of the Resident Trust Surety Bond effective 11/1/24 revealed a bond value of $193,915.84, which was insufficient compared to the $252,107.96 in resident funds held by the facility as of 1/7/25. During an interview on 1/7/25, the Nursing Home Administrator confirmed the inadequacy of the bond amount in protecting all resident financial funds as required by PA Code: 201.18(e)(1) Management.
Plan Of Correction
1. The facilities Resident Trust Surety Bond was increased to $252,200.00 on 1/7/25 to protect the residents financial funds deposited in the facility Resident Trust Accounts. 2. The facility will ensure the value of the facilities Surety Bond protects the balance of resident's financial funds that are deposited in the facility Resident Trust Fund. 3. The NHA will educate the new BOM on the requirement to protect the total amount of resident's financial funds that are deposited in the facilities Resident Trust Fund by ensuring the resident Surety Bond value meets or exceeds the value of funds identified in the Facility Trial Balance. 4. The NHA/designee will complete a Facility Trial Balance monthly x 3 and compare the amt to the value of the resident Surety Bond to ensure the resident funds are protected. If the Surety Bond is found to be not enough to protect the residents funds, the Surety Bond will be increased immediately. The results of these audits will be reported to the Quality Assurance Performance Improvement Committee for review, recommendations, and frequency of audits. 5. Date of compliance 2-10-25