Moving a loved one into a care home can be a difficult, but needed decision. Family members want to ensure they are choosing the best care facility possible for their loved one. This is especially important when the care facility will be offering assitance when it comes to funds.
Care facilities can show they are law-abiding and trustworthy by purchasing a Patient Trust Bond for their facility.
Family members can ensure their loved one has a recourse of mismanged funds by choosing a facility that holds a Patient Trust Bond.
What is a Patient Trust Bond?
A Patient Trust Bond (sometimes called a Nursing Home Bond) is a type of surety bond that guarantees patient trust funds are properly managed by the care facility.
Nearly all states require long-term care facilities to obtain a Patient Trust Bond, especially if those facilities offer assistance for funds.
If you are unsure if your care facility needs to get bonded, check your state health care administration website.
How the Bond Works:
The care facility or nursing home gets a Patient Trust Bond. As long as they are appropriately managing patient trust funds, nothing further happens. The care facility continues to run their business.
If the care facility mismanges patient trust funds, the patient (or the patient's family members) can make a claim against the bond.
Purpose of a Patient Trust Bond
Patient Trust Bonds are not insurance or protection for the care facitility. Rather, they are insurance for the residents of the care facility.
The purpose of a Patient Trust Bond is to ensure funds are managed appropriately. If funds are not managed properly, the individual in the care facility has recourse.
The bond form will outline the legal guarantees required of the care facility, but generally will include that patient funds:
- Be held separately and in trust
- Be administered on behalf of patients in the manner directed by the depositors
- Be accounted for honestly and truthfully
Read an example of how a Patient Trust Bond protected a client and recovered stolen funds.
For Care Facilities: How Much Does a Patient Trust Bond Cost?
Care facilities that are required to be bonded might wonder how much a bond will cost.
Patient Trust Bond amounts vary from state to state.
The bond amount is sometimes determined by the number of staff that are employed at the care facility. Other times, the bond amount is determined by the amount of funds held in trust.
You will not need to pay the full amount of your bond. For example, if you need a $10,000 bond, you will not need to pay $10,000.
The price you pay for your bond is largely dependent on the credit score of the facility. Care facilities with low credit might only pay 1% of the total bond amount. Those with riskier credit will have to pay more.
The best way to see what you or your facility would pay for a Patient Trust Bond is to get a free quote.
Is Getting Bonded Worth it?
Nearly all states require long-term care facilities to obtain a Patient Trust Bond. If you are unsure if your care facility needs to get bonded, check your state health care administration website.
If your facility does not require a bond, having one can be one of the most valuable assets to your team. A bond shows your patients and their family members that you will put their needs above all else.
If you are making the tough decision of moving a loved one to a care facitlity, ask if they are bonded.