Long-term care facilities in Louisiana who elect to accept and manage funds of some or all of its residents are required to submit a surety bond to the Louisiana Department of Health (DOH). The bond amount for this surety bond is based on an amount equal to or greater than all resident’s funds managed by the facility at any time during the one year period preceding, or the estimated maximum dollar amount of all such resident funds to be accepted and managed by the facility at any time during the next one year period – whichever is greater. Louisiana Patient Trust Surety Bonds ensure that the principal (care facility) protects and manages resident funds ethically and complies with all regulations in 42 CFR 483.10 (c). These regulations include, but are not limited to the following:
- The facility shall deposit any residents’ personal funds in excess of $50 in an interest-bearing account that is separate from any of the facility’s operating accounts.
- The facility shall establish and maintain a system that ensures a full and complete and separate accounting of each resident’s personal funds.
- Individual financial records shall be available through quarterly statements and upon request.
If the facility fails to fulfill the bond’s terms, a claim can be filed against the bond by the harmed party. If the claim is validated, the surety will reimburse the harmed party up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all amounts paid out, including any attorney fees.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.