The business manager of an Ohio nursing home pleaded guilty to stealing more than $1 million dollars from residents’ funds and insurance payments. The 48-year-old woman pleaded guilty to one count of theft, a second-degree felony, and one count of theft from a person of a protected class, a third-degree felony. She was immediately sentenced and is required to pay restitution to the victims, totaling $1.14 million. She also was sentenced to four years in prison, which will be suspended upon the completion of five years of community control and other treatment measures.
Ohio Attorney General Dave Yost announced the resolution to the case in a February 28, 2023, press release. The Medicaid Fraud Control Unit, an arm of Yost’s Health Care Fraud Section, had investigated and prosecuted the case.
“Theft from the elderly and those who serve them is a crime against all Ohioans,” Yost said. “Our office continues to root out fraud to protect those who cannot protect themselves.”
Compliance Perspective
Issue
F602 in the State Operations Manual, Appendix PP, states that residents have the right to be free from abuse, neglect, and misappropriation of resident property. Every nursing facility should have a double check system in place for all monetary transactions, and all transactions should be reviewed and approved by a second party to prevent misappropriation of funds. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities as well as the state agency. Misappropriation of funds can result in fines, other sanctions, and imprisonment.
Discussion Points
- Review the facility’s policies and procedures on accounting and the use of facility and resident funds. Update as necessary.
- Train appropriate staff on your policies for financial accounting and the protection and approved use of facility and resident funds. Document that these trainings occurred and file in each employee’s education file. Provide education to residents and their representatives at Resident and Family Council meetings or via newsletters or postings on facility bulletin boards about the importance of monitoring their bank and credit card statements regularly and keeping credit and debit cards secure.
- Periodically audit to ensure that all monetary transactions have been double-checked and approved by a second party, and that all transactions have been previously approved, including those accessing resident funds. Ensure that an independent audit is conducted at least annually. Also audit staff understanding to ensure that they are aware of the steps that should be taken if they suspect theft, and their reporting options, including the use of the anonymous hotline.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
