F0569

D

Failure to Timely Refund Deceased Resident’s Funds

Peoria Heights, Illinois Survey Completed on 02-13-2026

Penalty

No penalty information released

Summary

The facility failed to timely refund resident funds to a deceased resident’s representative, resulting in a deficiency related to misappropriation of resident property. The facility’s abuse policy prohibits exploitation and misappropriation of resident money and defines misappropriation as wrongful temporary or permanent use of a resident’s belongings or money without consent. The resident involved was a 96-year-old with essential hypertension, age-related cognitive decline, type 2 diabetes mellitus, and dementia, who had been admitted with these diagnoses and later died while on hospice services. The admission contract specified that any monies remaining after discharge would be returned to the resident after the facility received all payments from third-party payor sources, and that funds of a deceased resident would be released upon receipt of appropriate estate documentation.

After the resident’s death, internal emails between the HR/Business Office Manager and the Corporate Bookkeeper documented that the resident’s family member was concerned about receiving a refund and that an initial refund amount of $1,940 was identified. A later statement showed a balance of $10,465, and a subsequent email from the Corporate Bookkeeper confirmed a total refund amount of $10,465 with no other anticipated charges. Interviews revealed that the refund request had to be adjusted after an additional payment was received, and that the facility fell behind on processing the revised request and required preapproval due to the higher amount. The Business Office Manager acknowledged that refunds, particularly for private pay, were not processed timely, that there was no policy on refunds, and that the refund should have been completed months earlier, while another administrator indicated that refunds typically take 30 to 45 days to be issued.