What is a Patient Trust Bond?
States often require facilities such as nursing homes and assisted living communities to obtain a patient trust bond if patient funds will be deposited at the facility. This is a way to offer assurance to family members that their loved one’s finances will be handled appropriately while they are staying in the nursing home or at assisted living, whether permanently or for a short while.
How does a patient trust bond work?
A patient trust bond is similar to other surety bonds. There is an obligee, a principal, and a surety. The obligee is the state agency that requires the purchase of a patient trust bond. The principal is the company that is required to obtain the bond. The surety is the company that provides the financial backing for the patient trust bond.
If it is believed that the nursing home facility mishandled a patient’s funds in any way, then the harmed party can file a claim with the surety company against the bond in order to recover any loss or damages. The surety company will investigate the claim to determine if a payment should be made and for how much. If a payment is made to the complainant, then the principal is required to reimburse the surety company for the amount paid out from the bond. The payment amount will be no more than the total bond amount paid out from the bond. The payment amount will be no more than the total bond amount.
What does a patient trust bond cost?
The amount of a patient trust bond is determined by each state. Your premium will be a percentage of the total bond amount. Qualified applicants can pay as little as 1% for their patient trust bond. Request your free quote by completing our simple application. An agent will be able to get you an accurate quote and get you started on the bonding process. Once your payment has been made, we will get your patient trust bond documents sent to you right away.
Having the patient trust bond is an excellent way to protect your company and to inspire confidence in the family members of your patients. They will be happier knowing that their loved one’s finances are protected while they are in your care.