Pennsylvania Lawmakers Propose Legislation Prohibiting Nursing Home Employees from Serving in a Fiduciary Capacity with a Resident
Failure to ensure that residents are free from financial misappropriation or exploitation by staff members may result in regulatory non-compliance, fraud, and submission of false claims.
Compliance Perspective – Fiduciary Capacity
Policies/Procedures: The Compliance and Ethics Officer with the Administrator will review policies and procedures to consider whether the facility should implement a policy prohibiting employees from serving in a fiduciary capacity as a guardian, an agent under a power of attorney, a beneficiary of any insurance policy or annuity, or an executor of the estate of a resident in the facility.
Training: The Compliance and Ethics Officer, as well as every department head, will ensure that staff are trained to respond in a timely manner to concerns about the misappropriation and exploitation of a resident’s personal finances and/or possessions.
Audit: The Compliance and Ethics Officer should personally conduct an audit to survey residents or their legal representatives to determine if any employee is acting in a fiduciary capacity with a resident.
ABUSE OF RESIDENT PERSONAL FUNDS
In an effort to prevent a long-term care center employee from being in a position to exploit their closeness to a resident for personal gain, Pennsylvania legislators have introduced legislation prohibiting such an employee from serving as a guardian, an agent under a power of attorney, a beneficiary of any insurance policy or annuity, or an executor of the estate of a patient.
The proposal is co-sponsored by 14 bipartisan legislators and was prompted as a result of a case involving a constituent’s father who became a resident in a retirement home. An employee in the facility ingratiated himself with the resident and became like a good friend, was later named the executor of the resident’s will, and was paid $100,000 from the arrangement.
One of the primary advocates for the bill wrote this in support: “Financial exploitation is the fastest growing type of elder abuse, and as our frail elderly population continues to grow, it is essential that we address this issue and take the steps necessary to prevent such future exploitation.”
The bill was referred to the Committee on Aging and Older Adult Services.
