Failure to Prevent Misappropriation of Resident Funds
Penalty
Summary
The facility failed to protect a resident's rights by not preventing the misappropriation of the resident's funds. A resident, admitted with multiple diagnoses including dementia and depression, was found to have had $1,900 stolen from their personal finances by a facility staff member. The theft was discovered after the resident's family noticed unauthorized activity on the resident's credit card statement following a short-stay rehabilitation. The family reported their concerns to the facility, but due to uncertainty about the source of the charges, the Executive Director directed the family to contact law enforcement rather than initiating an internal investigation at that time. Subsequently, law enforcement confirmed that a staff member had used the resident's credit card for personal expenses. The facility only began its internal investigation, staff training, and resident reviews after being notified by the police of the confirmed theft. The failure to act promptly when first notified by the family resulted in emotional and financial harm to the resident, as the facility did not take immediate steps to investigate or prevent further misappropriation.