Long-term care facilities in Pennsylvania who elect to accept and manage funds of some or all of its residents are required to submit a surety bond to the Pennsylvania Department of Health (PDH). The bond amount for this surety bond varies and must be equal to the total dollar amount of patient funds deposited with the facility. Pennsylvania Patient Trust Surety Bonds ensure that the principal (care facility) protects and manages resident funds ethically and in compliance with all regulations in Section 1187.78 of the Pennsylvania Code. 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. In pooled accounts, there must be a separate accounting for each resident’s share.
- The facility shall maintain records relating to its management of residents’ personal finds for a minimum of 4 years.
- Statements regarding a resident’s financial record shall be available upon request to the resident or to the resident’s legal representative.
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 found to be valid, 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 attorneys’ 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.