Federal & Healthcare
Patient Trust Fund Bond
A patient trust fund bond protects the personal money that nursing home residents deposit with the facility.
- Required by
- CMS for Medicare and Medicaid facilities (42 CFR 483.10) and state health agencies (in Florida, the Agency for Health Care Administration)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond guarantees that the facility will safeguard and account for residents' personal funds. Federal rules require a surety bond or other acceptable assurance covering all resident funds deposited with the facility. A claim arises if the facility loses, misuses, or fails to return a resident's money.
Who needs it
- Nursing homes and skilled nursing facilities that hold resident funds
- Assisted living and residential care facilities, where state law requires it
What the underwriter looks at
- Average balance of resident funds held
- Facility financial statements
- Number of facilities covered
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond does a Florida nursing home need?
Florida section 400.162 requires the greater of twice the average monthly balance of the resident trust fund during the prior year, or $5,000. The bond runs to the agency for the benefit of any injured resident.
Does the bond cover only the personal needs allowance?
No. Federal guidance says any resident funds entrusted to the facility must be covered, including refundable deposits.