Patient Trust Bond

Patient trust bonds are required of nursing home facilities in certain states, as defined by that state’s particular laws. The bond penalty (amount) required usually correlates in some way with the patient trust fund, so it is important to contact the correct state office and determine the bond penalty that is being required.

Patient trust bonds guarantee that the principal will use patient trust funds in accordance with the law and will comply with any and all laws, avoiding fraudulent or dishonest behavior.

These bonds are typically continuous. However, certain states require continuation certificates to be issued upon renewal of the bond. In these cases, a certificate will be issued upon receipt of renewal payment. The certificate will be mailed to the principal. The principal then becomes responsible for delivering the certificate to the correct obligee.

Patient trust bonds usually have a 30 day cancellation provision, but this is subject to the state’s preference.