California Code of Regulations › Title 22 - Social Security › Division 5 - Licensing and Certification of Health Facilities, Home Health Agencies, Clinics, and Referral Agencies › Chapter 3 - Skilled Nursing Facilities › Article 5 - Administration › Section 72529 - Safeguards for Patients' Monies and Valuables

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each facility to whom a patient's money
				  or valuables have been entrusted shall comply with the following:
(1) No licensee shall mingle patients' monies
				  or valuables with that of the licensee or the facility. Patients' monies and
				  valuables shall be maintained separate, intact and free from any liability that
				  the licensee incurs in the use of the licensee's or the facility's funds. The
				  provisions of this section shall not be interpreted to preclude prosecution for
				  the fraudulent appropriation of patients' monies or valuables as theft, as
				  defined by Section
				  484 of the
				  Penal Code.
(2) Each licensee shall
				  maintain safeguards and accurate records of patients' monies and valuables
				  entrusted to the licensee's care including the maintenance of a detailed
				  inventory and at least a quarterly accounting of financial transactions made on
				  the patient's behalf.
(A) Records of
				  patients' monies which are maintained as a drawing account shall include a
				  control account for all receipts and expenditures, supporting vouchers and
				  receipts for all expenditures of monies and valuables entrusted to the
				  licensee, an account for each patient and supporting vouchers filed in
				  chronological order. Each account shall be kept current with columns for
				  debits, credits and balance. All of these records shall be maintained at the
				  facility for a minimum of three years from the date of transaction. At no time
				  may the balance in a patient's drawing account be less than zero.
(B) Records of patients' monies and other
				  valuables entrusted to the licensee for safekeeping shall include a copy of the
				  receipt furnished to the patient or to the patient's authorized representative.
				  Each item of patient property entrusted to the licensee shall be clearly
				  identified as belonging to that patient.
(3) Patients' monies not kept in the facility
				  shall be deposited in a demand trust account in a local bank authorized to do
				  business in California, the deposits of which are insured by the Federal
				  Deposit Insurance Corporation, or in a federally insured bank or savings and
				  loan association under a plan approved by the Department. If a facility is
				  operated by a county, such funds may be deposited with the county treasurer. If
				  a facility is operated by the State, such funds may be deposited with the State
				  Treasurer. All banking records related to these funds, including but not
				  limited to deposit slips, checks, cancelled checks, statements and check
				  registers, shall be maintained in the facility for a minimum of three years
				  from the date of transaction. Identification as a patient trust fund account
				  shall be clearly printed on each patient's trust account checks and bank
				  statements.
(4) A separate list
				  shall be maintained for all checks from patient funds which are, or have been
				  outstanding for 45 days or more as reflected on the most recent bank statement.
				  Bank statements shall be reconciled monthly with copies of the reconciliation
				  maintained by the facility. Any checks on such accounts written off or uncashed
				  shall result in an addition to the appropriate patient's account.
(5) Expenditures, for a particular patient,
				  from the patient fund account as specified in (3) above may not exceed the
				  drawing right that the patient has in the account. Expenditures from the
				  patient fund account shall only be for the immediate benefit of that particular
				  patient. No more than one month's advance payment for care may be received from
				  a patient's account.
(6) A person,
				  firm partnership, association or corporation which is licensed to operate more
				  than one health facility shall maintain a separate demand trust account as
				  specified in (3) above for each such facility. Records relating to these
				  accounts shall be maintained at each facility as specified in (2) above.
				  Patient funds from one facility shall not be mingled with funds from another
				  facility.
(7) When the amount of
				  patients' money entrusted to a licensee exceeds $500, all money in excess of
				  $500 shall be deposited in a demand trust account as specified in (3) and (5)
				  above unless the licensee provides a fireproof safe and the licensee desires
				  the protection accorded by Section
				  1860 of the
				  Civil Code.
(8) Upon discharge of a
				  patient, all money and valuables of that patient which have been entrusted to
				  the licensee and kept within the facility shall be surrendered to the patient
				  or authorized representative in exchange for a signed receipt. Monies in a
				  demand trust account or with the county treasurer shall be made available
				  within three normal banking days. Upon discharge, the patient or authorized
				  representative shall be given a detailed list of personal property and a
				  current copy of the debits and credits of the patient's monies.
(9) Within 30 days following the death of a
				  patient, except in a coroner or medical examiner case, all money and valuables
				  of that patient which have been entrusted to the licensee shall be surrendered
				  to the person responsible for the patient or to the executor or the
				  administrator of the estate in exchange for a signed receipt. Whenever a
				  patient without known heirs dies, written notice within five working days,
				  shall be given by the facility to the public administrator of the county as
				  specified by Section
				  1145 of the
				  California Probate Code and a copy of said notice shall be available in the
				  facility for review by the Department.
(10) Upon change of ownership of a facility,
				  there shall be a written verification by a public accountant of all patients'
				  monies which are being transferred to the custody of the new owner(s). A signed
				  receipt for the amount of funds in the patients' trust account shall be given
				  by the new owner to the previous owner.
(11) Upon closure of a facility a written
				  verification by a public accountant of all patients' monies shall be available
				  for review by the Department. Each patients' monies shall be transferred with
				  the patient.