Unauthorized Use of Resident Trust Funds
Penalty
Summary
Facility staff failed to prevent the misappropriation of a resident's patient trust funds, resulting in unauthorized withdrawals totaling $7,877.01 over a one-week period. The Business Office Manager (BOM) withdrew funds from the resident's account to make purchases, including clothing, furniture, and a recliner, without first obtaining the resident's permission or signature as required by facility policy. The BOM relied on input from Certified Nurse Aides (CNAs) regarding what the resident might need and proceeded with purchases without direct resident involvement or consent. The BOM also admitted to forgetting to have the resident sign the ledger receipt for a cash withdrawal given for shopping with family. The resident, who had no cognitive impairment but diagnoses including schizophrenia, anxiety disorder, depression, and dementia, stated that they did not authorize the purchases and did not want several of the items bought with their funds. Observations confirmed that some purchased items were not present in the resident's room, and some items, such as a recliner, were unwanted by the resident. The facility's policy required resident consent and signatures for all withdrawals, which was not followed in this case.