Nursing Home Business Office Manager Convicted and Sentenced for Theft from Residents

Alabama Attorney General Steve Marshall announced the conviction and sentencing of a woman for theft from residents of two nursing homes while she was employed as business office manager at the facilities. She was sentenced to 46 months imprisonment, split to serve 12 months in a county jail and 12 months supervised probation upon her release. She also paid $54,830 in restitution. 
 
Attorney General Marshall’s Medicaid Fraud Control Unit investigated the case after a referral from the Alabama Department of Public Health. The investigation determined that the woman had stolen $52,000 from three residents of a nursing home while she was employed as the facility’s business office manager. During that investigation, it was found that after her employment at that facility was terminated, she had obtained employment at a different nursing home, where she stole $3,000 from a resident. 
 
“Theft from residents of a nursing home is a reprehensible act, and those who victimize them must be held to account under the law,” said Attorney General Marshall. “My office, working with other state and local agencies, will remain vigilant to identify and prosecute criminals who prey upon the vulnerable.”  

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.