In the state of Virginia, long-term care facilities and nursing facilities are regulated and licensed by the Virginia Department of Health – Division of Long Term Care (DLTC). This agency requires any facility who elects to accept and manage the funds of some or all of its residents to file a surety bond with the DLTC. This bond ensures that the principal (care facility) protects and manages resident funds ethically and in compliance with all regulations in Section 12VAC5-371-160 of the Virginia Administrative Code. These regulations include, but are not limited to the following:
- Financial records of resident funds shall be kept according to generally accepted accounting principles.
- Have access to records of financial transactions made on their behalf at least once a month and is given at least a quarterly accounting of financial transactions made on their behalf.
- Provide a separate accounting for resident funds.
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.
Virginia Patient Trust Surety Bonds have varying amounts and must equal all funds held or managed by the facility. 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.