Failure to Timely Report Suspected Misappropriation of Resident Property
Penalty
Summary
The facility failed to report a suspected misappropriation of a resident's property to the State Survey Agency (SSA) within 24 hours of forming suspicion, as required by both facility policy and regulatory requirements. The incident involved a resident who, after being admitted with a history of anxiety disorder, mild cognitive impairment, bipolar disorder, and major depressive disorder, reported suspicious charges on their bank statement to the Business Office Manager (BOM). The BOM reviewed the statement and, after discussing with the resident, notified the Administrator due to concerns about possible fraudulent activity and the resident's financial management. The Administrator, upon being informed, contacted Adult Protective Services (APS) and the local police department, expressing concerns about the resident's ability to manage their finances and the potential need for guardianship. However, the Administrator did not report the suspected misappropriation to the SSA, stating that there was no clear evidence of fraud at the time and that the primary concern was the resident's financial mismanagement. Despite the facility's policy and regulatory requirements to report all suspicions of misappropriation within 24 hours, no such report was made to the SSA. Interviews with facility management and legal counsel confirmed that the expectation and policy were to report any concerns of potential fraudulent activity involving resident funds to the SSA, regardless of whether the activity was believed to have occurred inside or outside the facility. Documentation showed that the initial and final report was submitted to APS, but there was no evidence of timely notification to the SSA as required.