Failure to Prevent Staff Financial Exploitation of a Resident
Penalty
Summary
The deficiency involves the facility’s failure to protect a resident from financial exploitation and misappropriation of funds by a staff member. The resident had multiple diagnoses including metabolic encephalopathy, type 2 diabetes mellitus without complications, generalized muscle weakness, unspecified lack of coordination, and anxiety disorder, and was assessed as cognitively intact on a recent MDS. After a car accident and admission to the facility, the resident arranged for the facility receptionist to store her car at the receptionist’s home, with the understanding that the receptionist could use the car for personal errands. The resident later noticed suspicious transactions on her bank statements showing use of her bank card in the same city as the facility and reported that she did not recognize the charges. During interviews, the receptionist admitted that from January through February she received a total of $1,490 from the resident via a phone-based electronic payment application. The receptionist described that the resident would state she wanted to give money for storing the car, and the resident would enter the amount and tap her credit card on the receptionist’s phone to complete the transaction. The receptionist stated that $500 of this amount was used to pay for the release of the resident’s car from impound after the receptionist received a speeding ticket while driving the car, and that the remaining $990 was given randomly as payment for storing the car. The receptionist also stated she did not know she was prohibited from receiving money or financial compensation from residents. In contrast, the resident recalled giving the receptionist money for cleaning the car, gas on at least two occasions, and some money around Christmas, all sent through the phone, but denied paying for car storage. The resident expressed suspicion that the receptionist might be using her bank card but could not be certain. The administrator and social worker both acknowledged knowing that the receptionist was storing the resident’s car but denied knowing that the receptionist was receiving money from the resident or that the resident paid for the car’s release from impound due to the receptionist’s speeding ticket. Facility policies in effect prohibited abuse, exploitation, and misappropriation of resident property and specifically barred staff from requesting, borrowing, soliciting, or accepting money, gifts, or electronic payments from residents. The resident stated she felt terrible and bothered at the thought that someone from the facility might be taking her hard-earned money without her consent and that she might lose sleep over it.
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