What is a Michigan Nursing Home Patient Trust Fund Bond?

Michigan Nursing Home Patient Trust Fund BondThe Michigan Department of Licensing and Regulatory Affairs, Bureau of Community and Health Systems conditions nursing home facility operators/owners to furnish a surety bond as part of the licensure requirements, as amended under The Public Health Code Act 368.

The Michigan Nursing Home Patient Trust Fund Bond guarantees that patient trust funds are ethically and lawfully managed by the nursing home facility operators/owners for the welfare of their patients.

The bond requires nursing home facilities, its operators, and staff to:

  • Hold separately, and in trust, all patients’ funds deposited with them
  • Administer funds on behalf of patients in a manner directed by the depositors
  • Render accurate and complete accounts to the patients, depositors, and Obligee when requested
  • Account for all funds received, expended, and held upon termination of each deposit

 

What are the bond conditions?

  • The bond must be issued by a Surety authorized to conduct business in the State of Michigan.
  • The bond applies only to patients’ funds managed and held by the Principal (nursing home facility operator/owner).
  • If the Principal complies as agreed, the obligation will be null and void; otherwise, it will remain in full force and effect.
  • The bond may be terminated through a release by the Director of the Department of Licensing and Regulatory Affairs or cancellation by the Surety by giving 60 days written notice to the Director of the Department.
  • The bond remains continuous in nature and must not be cumulative from year to year, period to period or license to license.
  • If the care facility mismanages patient trust funds, the patient or its family members can make a claim against the bond.

 

What is the bond amount?

The bond amount is equal to not less than 1 1/4 times the average balance of patient funds held during the previous year.

For applicants of new licenses, the bond amount is not less than 1 1/4 times the average balance estimated by the Department to be held by the facility in the first year.

The cost of the bond is a percentage of the bond amount. It ranges between 1% and 5% and will serve as your bond premium.

 

How can I obtain a Nursing Home Patient Trust Fund Bond?

SEND US A BOND APPLICATION – Begin the bonding process by getting a FREE, fast and accurate quote HERE!

UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:

To avoid any delay, make sure that your requirements are complete before submitting them.

ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!

Talk to a surety expert today!

Sharing is Caring.