A Tennessee nursing home’s office manager is facing a charge of theft over $10,000 related to allegations of taking $1,000 a month from two residents at the facility and charging personal items to a company account at a local hardware store. In total, authorities say she took approximately $15,475 over 17 months from two residents and from the facility itself.
According to an affidavit filed by Whitwell police, supervisors at the nursing home first noticed an unrecognized charge on the facility’s charge account at the local hardware store on April 29, 2024. The defendant allegedly told the police she had gone to the hardware store and charged the purchase of grass fertilizer and electrical items for her new home on the company account. The purchase totaled about $500.
According to the affidavit, when interviewed by the police, the defendant said she had been taking money that wasn’t hers since around November 2022. She also allegedly told police that she took checks every month from two of the residents to use to make purchases for their personal needs. From one of the residents she took $250 a month, and from the other she took $750 a month. After purchasing what was needed for each resident, she kept the rest of the money and used it to buy items for herself and her children.
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.*
