Florida Nursing Home Patient Trust Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Florida Nursing Home Patient Trust bond
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: All Florida nursing homes that hold resident funds/property in a trust account
- Purpose: To ensure residents will receive compensation for any damages should the nursing home mishandle their funds
- Who Regulates Nursing Homes in Florida: The Florida Agency for Health Care Administration
Background
Florida statute 400.062 requires all nursing homes operating in the state to obtain a license with the Agency for Health Care Administration. The Florida legislature enacted the licensing requirement to ensure that nursing homes engage in ethical business practices. To provide financial security for the enforcement of the licensing law, nursing homes that hold residents’ personal funds or property in a trust account must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Florida Nursing Home Patient Trust Bond?
Florida requires nursing homes that hold resident funds/property in a trust account to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that residents will receive compensation for financial harm if the nursing home fails to comply with the regulations set forth in Florida statutes 400.162. Specifically, the bond protects the public if the nursing home mishandles residents’ personal funds or property. In short, the bond is a type of insurance that protects the public if the nursing home acts unethically with resident funds or property.
How Can an Insurance Agent Obtain a Florida Nursing Home Patient Trust Surety Bond?
BondExchange makes obtaining a Florida Patient Trust surety bond easy. Simply log in to your account and use our keyword search to find the “nursing home” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Florida statute 400.162 dictates that the bond amount must be equal to twice the average monthly balance of funds in the resident trust fund during the prior year or $5,000, whichever is greater.
Is a Credit Check Required for the Florida Nursing Home Patient Trust Bond?
No, a credit check is not required for the Florida Nursing Home Patient Trust bond. Because the bond is considered relatively low risk, the same low rate is offered to all nursing homes in Florida regardless of their credit history.
How Much Does the Florida Nursing Home Patient Trust Bond Cost?
The Florida Nursing Home Patient Trust bond costs just $100 a year or 1% of the bond amount, whichever is greater. BondExchange also offers monthly pay-as-you-go options for these bonds.
Who is Required to Purchase a Bond?
Florida requires all nursing homes that hold resident funds or property in a trust account to purchase and maintain a surety bond to be eligible for a business license.
The Florida Agency for Health Care Administration defines a nursing home as any facility that provides 24 hour a day nursing, physical, dietary, and recreational care to individuals who are ill or physically infirm.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Florida Nursing Homes Apply for a License?
Nursing homes in Florida must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the application checklist for details on the process.
License Period – All Florida Nursing Home Licenses are valid for 2 years and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Nursing homes that hold resident funds or property in a trust account to purchase and maintain a surety bond (limits outlined above)
Step 2 – Purchase Insurance
All nursing homes must obtain both general and professional liability insurance and submit proof of insurance with their license application. There is no explicitly stated required coverage amount. However, nursing homes should contact the Agency for Health Care Administration to determine the amount of coverage that is right for them.
Step 3 – Pass Inspection
License applicants must have their facility inspected by their local fire department and submit proof that they passed the inspection with their application
Step 4 – Complete the Application
All Florida Nursing Home License applications should be mailed to the following address:
Agency for Health Care Administration
Long Term Care Unit
2727 Mahan Dr., MS 33
Tallahassee, FL 32308
Nursing homes must complete the application in its entirety, and submit the following items:
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- Proof the facility meets all local zoning requirements
- Proof of property occupancy (lease, mortgage, etc.)
- Fire safety inspection report
- Copies of all civil verdicts or judgments against the applicant in the prior ten years relating to medical negligence, violation of resident’s rights, or wrongful death
- Plan for quality assurance and for conducting risk management
- Financial ability to operate
- Application addendum
- Required disclosures for applications taken by Medicare, Medicaid, or CLIA (if applicable)
- Approved repayment plan (if applicable)
Nursing homes will need to pay an application fee based on the number of beds they contain. The required application fee can be determined on the application checklist.
How Do Florida Nursing Homes Renew Their License?
Nursing homes in Florida can renew their license online here. All Florida Nursing Home Licenses are valid for 2 years and must be renewed before the expiration date.
What are the Insurance Requirements for Nursing Homes in Florida?
Florida requires all nursing homes to obtain general and professional liability insurance (limits not specified). Nursing homes that hold resident funds or property in a trust account to purchase and maintain a surety bond (limits outlined above).
How Do Florida Nursing Homes File Their Bond?
Nursing homes should mail their completed bond form, including the power of attorney, to the following address:
Agency for Health Care Administration
Long Term Care Unit
2727 Mahan Dr., MS 33
Tallahassee, FL 32308
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the nursing home. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Bond’s term
- Date the bond is signed
What Can Florida Nursing Homes Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, nursing homes in Florida must adhere to the following provisions:
- Hold all resident funds/property in a trust account
- Do not mismanage resident funds/property
- Make honest and accurate reports on resident funds/property
What Other Insurance Products Can Agents Offer Nursing Homes in Florida?
Florida requires nursing homes to obtain both general and professional liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Florida Nursing Home Customers?
Florida conveniently provides a public database to search for active nursing homes in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
What Other Surety Bonds are Required for Florida Nursing Homes?
Individuals/businesses that purchase a leased nursing home in Florida must purchase a Leased Nursing Home bond to ensure that the Florida Medicaid Agency is reimbursed for any Medicaid overpayments made to the nursing home’s previous owners.
