Nursing Facility Resident Trust Fund Bonds
What is a Nursing Facility Resident Trust Fund Bond?
A Nursing Facility or Resident / Patient Trust Fund Bond is required by long-term care facilities, including nursing homes and assisted living facilities, along with businesses that offer at-home care. The surety bond protects long-term care patients and their families by ensuring that the facility complies with state laws and regulations, and administers patient trust funds in an ethical and financially responsible manner. The surety bond is obligated per Section 483.10(c)(7) of the Code of Federal Regulations for operators of long term care facilities to ensure faithful security for all personal funds of residents deposited with the facility. Assurance of compliance with this obligation rests with the state of domicile of the facility. The surety bond is conditioned upon proper safeguarding and accounting for all funds of residents of the facility which are deposited with the principal while this bond is in effect.