Failure to Investigate Misappropriation of Resident Funds
Penalty
Summary
The facility failed to thoroughly investigate an allegation of misappropriation of residents' personal funds, as required by its own policy and procedure. The incident began when the Nursing Home Administrator (NHA) was made aware that the cash box for resident funds contained only $125.00, when it should have contained $1,030.00. The investigation identified the former Business Office Manager (BOM) as the alleged perpetrator, and the NHA reported the missing $905.00 to the appropriate authorities. However, the facility did not conduct a comprehensive review of all resident fund transactions during the former BOM's tenure, nor did it investigate whether additional funds were missing beyond the initial amount discovered. A review of resident fund statements for six residents who authorized the facility to manage their personal funds revealed multiple withdrawals for personal needs, clothing, tobacco, and telephone charges, with no supporting receipts for these transactions. Several residents reported that they did not receive the amounts indicated on their statements, did not smoke or purchase the items listed, or were only allowed to withdraw small amounts at a time. One resident expressed distress over missing funds and stated that she was charged for items she never received, while another resident was visibly angry about unauthorized withdrawals. Withdrawals were also documented for residents after their discharge or death, with no receipts to substantiate these transactions. Interviews with facility staff confirmed that after the initial discovery of missing funds, no further investigation was conducted to determine if other residents were affected. The NHA and the President of Revenue Cycle both acknowledged that there was no audit or oversight of the former BOM, and residents were not instructed to review their financial statements for accuracy. The Social Worker was only directed to deliver statements to residents without further explanation or guidance, and the facility did not follow up on missing receipts or discrepancies in resident accounts.