Failure to Obtain Written Authorization for Management of Resident Trust Funds
Penalty
Summary
The facility failed to obtain proper written authorization to manage the personal trust funds of two residents. One resident, who was cognitively intact and able to express her wishes, refused to sign the authorization paperwork, stating she could manage her own finances. Despite this, the facility proceeded to manage her funds, including becoming the representative payee for her Social Security benefits without her consent. The resident became aware of this change after contacting Social Security and observing facility staff handling documents related to her finances. This led to significant agitation, aggressive behavior, and ultimately, the resident being hospitalized. Additionally, the facility managed another resident's funds without obtaining written authorization, as confirmed by the Business Office Manager, who stated that the majority of residents did not have such authorization on file. The facility's own policy required residents or their representatives to sign an authorization form before the facility could manage personal funds, but this procedure was not followed for these two residents.