Failure to Timely Report Suspected Misappropriation of Resident Funds
Penalty
Summary
The deficiency involves the facility’s failure to ensure timely reporting of an allegation of misappropriation of resident property to the State Agency and to the facility’s abuse coordinator. A resident with diagnoses including epilepsy, congestive heart failure, depressive disorder, and anxiety disorder, and documented as cognitively intact, had written a check to the facility that was returned for insufficient funds. The Business Office Manager (BOM) received notice of the returned check and, upon speaking with the resident, learned the resident believed there was over $4,000 in the account and did not have their bank card or wallet, stating that the social worker had it. The BOM then located the resident’s wallet in the social service office, but the bank card was missing. During a speakerphone call with the bank, the BOM and resident were informed that the resident’s credit card payment had overdrawn the account and that there were several transactions the resident did not recognize. The bank asked if they knew who might be using the card, and the BOM identified a social service employee, with the bank indicating that this person had been tracked for a cash advance with invalid data. Despite suspecting fraudulent activity toward the resident on the date the returned check was identified, the BOM did not report the suspected misappropriation of resident property to the facility’s abuse coordinator, who was the Nursing Home Administrator (NHA), and did not report the allegation to the State Agency. Instead, the BOM contacted the company’s owner by text and later by phone to discuss the suspected misappropriation. The NHA, who later reported the allegation to the State Agency, stated that the BOM was aware of the possibility of misappropriation when the check was returned and acknowledged that the BOM should not have bypassed the abuse coordinator. The facility’s written abuse, neglect, and exploitation policy required reporting all alleged violations to the Administrator, State Agency, Adult Protective Services, and other required agencies within specified timeframes, including not later than 24 hours for events that do not involve abuse and do not result in serious bodily injury. The BOM acknowledged awareness of the abuse policy and that they did not follow protocol when they failed to report the suspected misappropriation as required.
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