Failure to Timely Convey Resident Trust Funds After Discharge or Death
Penalty
Summary
The deficiency involves the facility’s failure to convey resident funds and close resident trust accounts within 30 days of discharge, as required by its own resident fund management policy and applicable regulations. The facility policy, last reviewed on 5/20/25, stated that discharged resident accounts are to be closed following reconciliation and that funds are to be released after completion of an audit and reconciliation. Review of the resident fund trial balance dated 3/18/26 showed that two discharged residents still had open accounts with balances: one with $384.68 and another with $7,430.63. The clinical records for these residents did not contain documentation that their monies were provided within 30 days after discharge. The first closed record (CR1) was for a resident with diabetes, schizophrenia, and hypertension, whose progress note on 1/4/26 documented acute psychiatric distress, including refusal of medications and repeated verbalizations to be killed, leading to a 302 involuntary commitment and transfer from the facility with EMT and police escort. The second closed record (CR2) was for a resident with diabetes, hypertension, and Alzheimer’s dementia, whose progress note on 1/25/26 documented that she was found without pulse or respirations, the physician was notified, and an order was given to release the body to the funeral home, with a nephew notified. Despite these discharges—one due to transfer for psychiatric evaluation and one due to death—there was no indication in either clinical record that their funds were conveyed within 30 days, and the Business Office Manager confirmed that the facility failed to close these accounts and release the funds as required.
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