California Health Facility Patient Trust Fund Bond
Find out why you’re required to get this bond below!
What is a California Health Facility Patient Trust Fund Bond?
Not all health facilities that are operating within California are required to obtain this bond. Only those licensed health facilities that handle money in excess of $25 per patient or over $500 for all patients.
This requirement is obligated by law (Section 1318 of the California Health and Safety Code) and enforced by the California Department of Public Health.
This bond will ensure that the licensed health facility —or those who are renewing their licenses or applying for one —will faithfully and honestly handle the money of its patients. And if any misconduct is committed by the licensee, the patient who has suffered damages will be able to recover the lost amount by filing a claim against this bond.
How much is a California Health Facility Patient Trust Fund Bond?
The bond premium will depend on the health facility’s credit score. Those who have excellent credit scores will be eligible to pay a low bond premium or just 1% of the bond amount.
The bond amount will be determined by the California Department of Public Health. The minimum bond amount is $1,000.
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How can I get a California Health Facility Patient Trust Fund Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- APPLY FOR THIS BOND HERE!
- Once we’ve received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you after the indemnity agreement is signed.
How does a California Health Facility Patient Trust Fund Bond work?
This bond is for the protection of the Obligee (State of California) in case the Principal violates any of his or her contractual obligations that are required by Section 1318 of the California Health and Safety Code. An Obligee can be any person who has been harmed by the misconduct of the Principal (health facility).
If the Principal mishandles the money of the patients, the said patient can file a bond claim. The Surety will first investigate if the claim is valid before paying the Obligee. If it is, the Surety will settle the claim. Under the terms of the bond, the Principal must then reimburse the Surety for the payments made.
Ready to apply? START HERE!