Mich. Admin. Code R. 325.45383 - Trust fund and surety bond

Rule 383.

(1) A nursing care facility shall have a policy and procedures regarding how it will hold funds or property in trust for patients as a fiduciary when the facility receives money or property belonging or due a patient in accordance with section 21767 of the code, MCL 333.21767. The policy and procedure must describe the process for the safeguarding, holding, and management of patients funds.

(2) The nursing care facility shall provide a summary of the policy and procedures to each individual patient and the patients designated representative or guardian at the time of admission.

(3) The trust fund policy and procedure must include all of the following:

(a) A statement that a patient is not required to participate in the trust fund.

(b) Assurances that the nursing care facility has no financial interest in the trust fund and that no facility funds will be comingled with patient funds.

(c) A provision that written consent to participate in the trust fund is to be obtained prior to the acceptance of any money from a patient.

(d) Provisions for management of the funds belonging to a patient who is incapable of managing his or her own funds.

(e) A process for assisting the patient or the patients legal representative in identifying a representative payee, if the patient can participate in the decision, or designating a representative payee for a patient who is not capable of participating in that decision and does not have a legal representative.

(f) Identification of the financial institution where the trust fund will be held.

(g) A requirement to provide a statement, at least quarterly, to each patient participating in the trust fund or upon request of the patient. The statement must include both of the following:

(i) A beginning and ending balance.

(ii) An accounting of all deposits, withdrawals, interest accrued, and fees assessed during the statement period.

(h) The fees charged in total to all patients may not exceed the amount of the fees charged by the bank for the maintenance of the account.

(i) Reasonable access for the patient to conduct transactions, including on weekends and holidays.

(j) Criteria to return within 7 business days all or any part of the personal funds of a patient held in the trust fund upon request or upon the patients transfer, discharge, or death.

(4) Trust fund records must be kept in accordance with generally accepted accounting principles.

(5) A nursing care facility may keep up to $200.00 of a patient's money in a non-interest-bearing account or a petty cash fund. If the patient provides more than $200.00 within 15 days, the nursing care facility shall either return the money in excess of $200.00 to the patient or deposit it in an interest-bearing account. The account may be individual to the patient or pooled with other patients, in accordance with the trust fund policy identified in subrule (3) of this rule.

(6) For a patient's personal funds that are received and deposited in an account outside the nursing care facility, upon request or upon the transfer or discharge of the patient, the facility shall return all or any part of those funds to the patient, legal guardian, or designated representative within 10 business days.

(7) A nursing care facility shall provide the executor or administrator of a patients estate with a written accounting of the patients personal belongings and funds within 10 business days of death. If a deceased patients estate has no executor or administrator, the nursing care facility shall provide the accounting to the patients next of kin, the patient's representative, or clerk of the probate court of the county in which the patient died.

(8) Upon the sale or other transfer of ownership of a nursing care facility, the facility shall provide the new owner with a written accounting of all patients funds being transferred and obtain a written receipt for those funds from the new owner. The facility shall also provide each patient, or the patients representative, a written accounting of any personal funds held by the nursing care facility before any transfer of ownership occurs.

(9) A nursing care facility shall purchase a surety bond for the minimum amount of $2,000.00 and develop a system to ensure the amount of the bond maintained to protect patients financial assets is equal to or greater than 1.25% of the average trust fund balance as calculated by the average balance of the trust fund for the preceding 12 months. Proof of the current surety bond must be made available at the time of an initial and subsequent state licensing surveys, compliant investigations, or upon request of the department to meet the requirements of section 21721(2) of the code, MCL 333.21721.

Notes

Mich. Admin. Code R. 325.45383

2020 MR 4, Eff. 2/21/2020