California Nursing Home Administrator License Practice Exam

What must facilities do if they have an owner or staff member acting as the attorney-in-fact for residents?

1. Notify residents of funds within 30 days

2. Maintain a surety bond equal to twice the average monthly income of the resident

3. Offer to manage resident properties

4. Submit reports to the resident’s family

The correct answer is: Maintain a surety bond equal to twice the average monthly income of the resident

In cases where a facility has an owner or staff member acting as the attorney-in-fact for residents, the requirement to maintain a surety bond equal to twice the average monthly income of the resident is crucial for the protection of the resident's financial interests. A surety bond serves as a financial guarantee that the attorney-in-fact will act in the best interest of the resident and will manage their assets responsibly. This requirement helps to safeguard against potential misuse of funds and provides a layer of security for residents who may be vulnerable or unable to oversee their financial matters personally. This protective measure is significant because it instills confidence in residents and their families that there is accountability in financial transactions and decisions made on their behalf. The requirement for a surety bond represents a commitment to ethical management practices and underscores the importance of fiduciary responsibility in facilities that provide services to residents. While other choices might seem relevant, they do not address the primary concern of financial safeguarding inherent in the role of an attorney-in-fact. For example, notifying residents of funds or submitting reports to the family may involve information sharing but does not provide the same level of financial protection. Offering to manage resident properties does not directly relate to the need for accountability and safeguarding of the resident's income