Section 400.162 of the Florida Statutes requires that all nursing homes must be licensed by the the Agency for Health Care Administration in order to legally operate within the state. Due to the fact that nursing homes are often held responsible for ensuring that funds belonging to the residents in their care are not mishandled, the State requires a guarantee that the nursing home (principal) will do so in accordance with all applicable rules and regulations. To ensure that the principal fulfills all obligations with regard to residents’ funds, the Administration requires the nursing home to purchase a surety bond in an amount equal to twice the average monthly balance in the resident trust fund during the previous year or $5,000—whichever amount is greater.
The Revised Florida Bond
While the revisions to the bond requirement are not extensive to the point they affect things like the bond amount or term of the bond, the amendment to the current bond requirement is by no means of no consequence to nursing homes that are seeking licensure. Previously, surety bonds only covered resident funds located at homes within a particular service district, meaning that multiple bonds would be required to cover multiple service districts, despite the fact that the nursing homes they covered may have been within the same state. The new requirement makes obtaining a license easier in that it allows principals to submit only one surety bond—provided that it is issued on form with the same language as AHCA Form 3110-6002—intended to protect resident funds at nursing homes across the entire state of Florida.
In the event that a resident requests a licensee to hold funds in trust at any point while the license remains active, the licensee must inform the Agency for Health Care Administration in writing and apply for a surety bond within seven business days. Failure to do so may result in penalties including the eventual revocation of the nursing home’s license.
If necessary, the licensee may send written notice of the request to:
Agency for Health Care Administration, Long-Term Care Unit
2727 Mahan Drive, Mail Stop #33
Tallahassee, FL 32308
For more information about this bond, contact SuretyBonds.com at 1 (800) 308-4358.