Ohio Nursing Home Bond

An Ohio Nursing Home Bond is a type of surety bond required by the state of Ohio Department of Health for any nursing home that manages the financial affairs of its residents. It acts as a form of financial protection for residents in case the facility mismanages their funds or fails to comply with state regulations.

The bond amount is determined by the number of licensed beds in the nursing home, multiplied by $10,000. For example, a nursing home with 100 beds would need a bond of $1,000,000. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to get an Ohio Nursing Home Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Ohio Nursing Home Bond will be shipped to the bond applicant.^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who Needs this Surety Bond?

In Ohio, any nursing home that manages the financial affairs of its residents needs an Ohio Nursing Home Bond, with a few exceptions. Here’s a breakdown:

• Required for:
  • All nursing homes handling resident funds:
  • This includes facilities providing personal care and/or skilled nursing services to three or more unrelated residents, such as nursing homes, residential care facilities, homes for the aging, and veteran’s homes.
  • Examples: A nursing home holding residents’ deposits, managing their personal spending accounts, or paying their bills directly requires a bond.
• Exceptions (do not need a bond):
  • State-owned nursing homes: Facilities owned and operated by the state of Ohio or a political subdivision (e.g., county) are exempt.
  • CARF-accredited nursing homes in specific programs: Facilities accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF) and participating in both Medicare and Medicaid programs are exempt.

Remember: This information is not a substitute for legal advice. If you have specific questions about Ohio Nursing Home Bonds, consult with an attorney or insurance professional.

What Does the Bond Do?

The Ohio Nursing Home Bond serves two main purposes:

1. Protects residents from financial losses:
   • If a nursing home mismanages resident funds, fails to return deposits, or closes without returning residents’ belongings or funds, the bond acts as a financial guarantee.
   • The surety company that issued the bond will provide up to the bond amount to compensate residents for their losses.
   • This protects residents from being personally liable for the nursing home’s financial failings.
   • If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).
2. Ensures compliance with state regulations:

• • By requiring facilities to obtain a bond, the state of Ohio encourages nursing homes to maintain responsible financial practices and comply with resident protection laws.
  • The potential financial penalty of a bond claim serves as a deterrent to misconduct and encourages responsible management of resident funds.

Remember, obtaining a bond is just one step in ensuring the financial security of residents. Nursing homes must also maintain good financial records, have adequate insurance coverage, and comply with all relevant regulations.