Monday, November 18, 2013
Most long-term care providers are required to maintain trust funds for residents who request that the facility handle their money. These trust funds are supposed to work just like conventional bank accounts, with regular statements and reliable oversight. However, there has been over 1,500 cases of nursing homes being cited for mishandling funds.
In many cases, administrators siphon huge amounts of money to pay for everything from shopping to gambling sprees to household expenses. Other mismanagement includes the failure to pay interest on funds, improper accounting, and inadequate insurance.
With little safeguards in place, trust fund theft can be especially hard to detect. Most cases involve “an office manager or a business or finance manager, and they’re the only ones at the facility who really know how much money is coming in and going out of these accounts.”
For more information on the USA Today investigation, including details on individual thefts, please click the link below.
See Peter Eisler, Thefts from Nursing Home Trust Funds Target the Elderly, USA Today, Oct. 21, 2013.