Failure to Honor Resident Financial Rights and Provide Ongoing Access to Personal Funds
Penalty
Summary
The facility failed to honor a resident's right to manage their own financial affairs and did not obtain written authorization to act as a fiduciary for the resident's funds. One resident reported that their Social Security payments stopped being deposited into their personal bank account after a facility physician signed a statement indicating the resident could not handle their finances. The resident was not informed about the change, denied access to their funds and statements, and was unable to obtain necessary documents or legal assistance. Record review showed that the resident was assessed as cognitively intact and had multiple physician certifications indicating adequate decision-making capacity, including for financial matters. However, the facility submitted an SSA-787 form stating the resident was incapable of managing funds, resulting in the facility being assigned as Representative Payee without proper communication or documentation of a change in capacity. Interviews with facility staff revealed that the decision to pursue Representative Payee status was based on the resident's outstanding unpaid bill, not on a documented change in mental capacity. The Business Office Manager and physician confirmed that no additional assessments or consults were conducted to support the claim of financial incapacity. The resident was not provided with statements or timely access to their funds until after surveyor intervention, and there was no evidence of communication to the resident regarding the change in management of their Social Security benefits. Additionally, the facility did not have a system in place to allow residents ongoing access to their personal funds. Residents could only withdraw money during business hours on weekdays, and there was no provision for access after hours or on weekends. There were also instances when the facility ran out of petty cash, further restricting residents' ability to access their funds as needed.