Failure to Timely Investigate and Report Misappropriation of Resident Property
Penalty
Summary
The facility failed to ensure a thorough and timely investigation was completed and submitted to the State Survey Agency (SSA) within five days of forming suspicion that residents' financial information was being used fraudulently. Three residents were affected by this deficiency, each reporting suspicious or fraudulent activity on their financial accounts. The initial report of suspicious charges was made by one resident to facility staff, but the facility did not submit an initial report to the SSA or conduct interviews with other residents or staff to determine the extent of the issue until a second resident's family reported similar concerns nearly two weeks later. Facility policy required the Administrator to direct the investigation process and notify appropriate agencies, but the policy lacked specific instructions on what constituted a thorough investigation or when certain actions should be taken. Documentation showed that missing items and suspicious financial activity were reported by residents over several months, but there was no evidence of a comprehensive investigation or timely reporting to the SSA. The facility did not begin interviewing staff or other residents to assess the scope of the misappropriation until after multiple reports had been made, and the initial report to the SSA was delayed. Interviews with facility staff and the Administrator confirmed that the investigation was not initiated promptly, and that the Administrator did not suspect employee involvement until additional evidence was presented. The Administrator acknowledged that interviews with staff and residents were not started until after the second report, and that the SSA was not notified at the time of the initial suspicion. The facility's management company representatives stated that regulatory requirements call for immediate reporting and investigation, including staff and resident interviews, as soon as an allegation is made.