Cal. Code Regs. Tit. 22, § 72529 - Safeguards for Patients' Monies and Valuables
(a) Each facility to whom a patient's money
or valuables have been entrusted shall comply with the following:
(1) No licensee shall mingle patients' monies
or valuables with that of the licensee or the facility. Patients' monies and
valuables shall be maintained separate, intact and free from any liability that
the licensee incurs in the use of the licensee's or the facility's funds. The
provisions of this section shall not be interpreted to preclude prosecution for
the fraudulent appropriation of patients' monies or valuables as theft, as
defined by Section
484 of the
Penal Code.
(2) Each licensee shall
maintain safeguards and accurate records of patients' monies and valuables
entrusted to the licensee's care including the maintenance of a detailed
inventory and at least a quarterly accounting of financial transactions made on
the patient's behalf.
(A) Records of
patients' monies which are maintained as a drawing account shall include a
control account for all receipts and expenditures, supporting vouchers and
receipts for all expenditures of monies and valuables entrusted to the
licensee, an account for each patient and supporting vouchers filed in
chronological order. Each account shall be kept current with columns for
debits, credits and balance. All of these records shall be maintained at the
facility for a minimum of three years from the date of transaction. At no time
may the balance in a patient's drawing account be less than zero.
(B) Records of patients' monies and other
valuables entrusted to the licensee for safekeeping shall include a copy of the
receipt furnished to the patient or to the patient's authorized representative.
Each item of patient property entrusted to the licensee shall be clearly
identified as belonging to that patient.
(3) Patients' monies not kept in the facility
shall be deposited in a demand trust account in a local bank authorized to do
business in California, the deposits of which are insured by the Federal
Deposit Insurance Corporation, or in a federally insured bank or savings and
loan association under a plan approved by the Department. If a facility is
operated by a county, such funds may be deposited with the county treasurer. If
a facility is operated by the State, such funds may be deposited with the State
Treasurer. All banking records related to these funds, including but not
limited to deposit slips, checks, cancelled checks, statements and check
registers, shall be maintained in the facility for a minimum of three years
from the date of transaction. Identification as a patient trust fund account
shall be clearly printed on each patient's trust account checks and bank
statements.
(4) A separate list
shall be maintained for all checks from patient funds which are, or have been
outstanding for 45 days or more as reflected on the most recent bank statement.
Bank statements shall be reconciled monthly with copies of the reconciliation
maintained by the facility. Any checks on such accounts written off or uncashed
shall result in an addition to the appropriate patient's account.
(5) Expenditures, for a particular patient,
from the patient fund account as specified in (3) above may not exceed the
drawing right that the patient has in the account. Expenditures from the
patient fund account shall only be for the immediate benefit of that particular
patient. No more than one month's advance payment for care may be received from
a patient's account.
(6) A person,
firm partnership, association or corporation which is licensed to operate more
than one health facility shall maintain a separate demand trust account as
specified in (3) above for each such facility. Records relating to these
accounts shall be maintained at each facility as specified in (2) above.
Patient funds from one facility shall not be mingled with funds from another
facility.
(7) When the amount of
patients' money entrusted to a licensee exceeds $500, all money in excess of
$500 shall be deposited in a demand trust account as specified in (3) and (5)
above unless the licensee provides a fireproof safe and the licensee desires
the protection accorded by Section
1860 of the
Civil Code.
(8) Upon discharge of a
patient, all money and valuables of that patient which have been entrusted to
the licensee and kept within the facility shall be surrendered to the patient
or authorized representative in exchange for a signed receipt. Monies in a
demand trust account or with the county treasurer shall be made available
within three normal banking days. Upon discharge, the patient or authorized
representative shall be given a detailed list of personal property and a
current copy of the debits and credits of the patient's monies.
(9) Within 30 days following the death of a
patient, except in a coroner or medical examiner case, all money and valuables
of that patient which have been entrusted to the licensee shall be surrendered
to the person responsible for the patient or to the executor or the
administrator of the estate in exchange for a signed receipt. Whenever a
patient without known heirs dies, written notice within five working days,
shall be given by the facility to the public administrator of the county as
specified by Section
1145 of the
California Probate Code and a copy of said notice shall be available in the
facility for review by the Department.
(10) Upon change of ownership of a facility,
there shall be a written verification by a public accountant of all patients'
monies which are being transferred to the custody of the new owner(s). A signed
receipt for the amount of funds in the patients' trust account shall be given
by the new owner to the previous owner.
(11) Upon closure of a facility a written
verification by a public accountant of all patients' monies shall be available
for review by the Department. Each patients' monies shall be transferred with
the patient.
(b) If
property is purchased for use of more than one patient, from patient trust
funds, the facility shall secure a written agreement between all patients whose
funds are used, or their authorized representatives. The agreement shall
expressly acknowledge consent of all parties and shall provide for disposition
of the property in the event of disagreements, discharge, transfer or
death.
(c) No licensee, owner,
administrator, employee or their immediate relative or representatives of the
aforementioned may act as an authorized representative of patients' monies or
valuables, unless the patient is a relative within the second degree of
consanguinity.
(d) The facility
shall make reasonable efforts to safeguard patients' property and valuables
that are in possession of the patient.
(e) For purposes of this section, patients'
funds maintained in a financial institution shall be deemed to be entrusted to
a facility if the licensee, or any agent or employee thereof, is an authorized
signatory to said account. Records maintained and provided by the financial
institution in accordance with a plan which has obtained the written approval
of the Department, may fulfill the obligation of the facility with regard to
the maintenance of records for such funds.
Notes
Note: Authority cited: Sections 208(a) and 1275, Health and Safety Code. Reference: Section 1276, Health and Safety Code.
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