A Connecticut man was arrested and charged with financially exploiting an elderly nursing home resident. According to the arrest warrant affidavit, the man was the business manager at a nursing home. The nursing home is a facility that accepts Medicaid monies on behalf of clients for services. The business manager improperly accessed an elderly resident’s bank account and made online withdrawals and transfers and wrote checks to himself without permission between September 2020 and February 2021.
The business manager was arrested by inspectors from the Medicaid Fraud Control Unit in the Office of the Chief State’s Attorney, and charged with one count each of Larceny in the Second Degree, Identity Theft in the First Degree, Forgery in the Second Degree, and Computer Crimes.
Larceny in the Second Degree is a class C felony punishable by up to 10 years in prison. Identity Theft in the First Degree is a class B Felony, punishable by up to 20 years in prison. Forgery in the Second Degree and Computer Crimes are class D Felonies, punishable by up to five years in prison. The case will be prosecuted by the Medicaid Fraud Control Unit.
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.
- 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. 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.*
