What is a Patient Trust Surety Bond?
A patient trust surety bond is often needed by assisted living facilities, independent living facilities, and nursing homes. These bonds usually protect against the mishandling or loss of patient funds. Additionally, patient trust bonds may also cover improper payments made by the principal to a third party. These bonds are commonly referred to as nursing home patient trust bonds.
How much is a Patient Trust Bond?
The cost of your surety bond depends on the amount needed. Smaller bond amounts are generally based on the owner’s personal credit score. Large bond amounts are primarily based on the facility’s financial condition. On average, the cost should be 1-3% percent of the bond amount needed. Meaning, a $10,000 nursing home bond would cost $100-300.
What bond amount do I need?
Your bond amount is usually determined by the obligee. The obligee is generally a government agency who has oversight over the healthcare industry in your state. For example: The Agency for Healthcare Administration or AHCA governs the industry in Florida. Agencies like AHCA are typically responsible for enforcing rules including any surety bond requirements.
The amount needed is usually twice the amount of patient funds held. However, some obligees require a different amount and others by location. The best way to ensure your bond amount is correct is to contact the appropriate state agency.
Who needs a Patient Trust Bond?
ILF’s, ALF’s, and nursing homes usually need patient trust bonds. Generally, if your nursing home holds patient funds, you will need a bond to protect those funds. Your company may also want to purchase a Fidelity Bond which is also referred to as crime insurance.
How do I apply for a Patient Trust Surety Bond?
- Complete our online Patient Trust Surety Bond application, or
- Download and complete our printable Patient Trust Surety Bond application, and
- Receive your surety bond quote in minutes!
What happens if I don’t get a bond?
Your business can be fined or shut down if a surety bond is required by your state and one isn’t in place. The regulatory agency should send a letter to your business address indicating that a bond needs to be posted. In some cases, you may receive a cease and desist order. This is usually when your business is operating without a license however.