A Patient Trust bond, also known as a nursing home bond, is a tool used to help protect trust fund assets for a patient being cared for in a nursing home or some other sort of long term care facility. In the event that a care facility mishandles the protected assets, a claim can be made on the bond to help compensate for any losses caused by the action.
A long term care facility is responsible for how it manages, accounts for and holds the funds deposited by its patients. The care facility is required to get a patient trust fund bond to comply with the rules governing the licensing of the facility. The bond adds a level of protection for the patient’s funds that are managed by the care facility.
The patient trust bond provides a form a guarantee that the long term care facility will manage its fiduciary role with regard to its patients funds in a manner acceptable to laws governing these types of facilities. The patient trust bond provides a surety’s backing of the care facility. The bond effectively says the surety believes the care facility will handle its responsibilities lawfully and if any actions occur to the contrary, the surety can be held financially liable in the form of a claim on the bond.
A patient trust bond is not an insurance product, even though some sureties are branches of insurance companies. Similarly to an insurance product, when a claim is made on the patient trust fund bond, the surety will determine the validity of the claim and make payment if the claim is deemed valid and/or no other solution can be presented. Unlike insurance products, the surety will seek repayment of the funds expended on a claim. The surety will attempt to collect the funds from the principal, the long term care facility.
Patient trust fund bonds are typically needed to fulfill a licensing requirement at the state level. Nursing home bonds are usually required to be in force for as long as the care facility remains licensed. The owners of the long term care facility would apply for the patient trust fund bond. Once the bond is received, it can be given to the agency administering the license. Patient trust bonds are only provided to fulfill the bonding requirement.
Patient trust fund bond amounts are determined by the state’s healthcare administration or other applicable agency. The bond amount is usually determined by taking the number of employees and/or the amount of funds held in trust by the care facility. Patient trust bond amounts vary from state to state as do the guidelines that determine them. The exact amount required is typically made clear by the state agency.
Obtaining a patient trust bond is usually a simple process. A bond application followed by a soft credit check are often all that is required to obtain a quote. If any additional information is needed, our agents will make that known right away. Patient trust fund bond quotes are usually obtained within a business day.
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