Failure to Provide Advance Written Notice of Rate Increase
Penalty
Summary
The facility failed to provide advance written notice of a private pay rate increase to a resident who was cognitively intact and responsible for his own financial matters. The resident, who had a history of frequent falls and pneumonia, was admitted with his daughter listed as the emergency and HIPAA contact. According to the facility's admission agreement, a minimum of 60 days' written notice is required before any financial rate increase is implemented. However, billing records showed that the resident's monthly charge increased from $1,200 to $1,567.18 without documented evidence of advance written notification to the resident or his representative. The deficiency was further substantiated when the resident's daughter contacted the Business Office Manager to inquire about the increased charges, and it was confirmed during a staff interview that no written notification had been provided prior to the rate increase. This failure was identified through a review of billing records, clinical documentation, facility policies, and staff interviews, and it was cited as a violation of resident rights under 28 Pa Code 201.29(c)(1).