Michigan Nursing Home Administrator (NHA) Practice Exam

Which action must a nursing home take regarding patients' funds held in trust?

1. Annually review the funds

2. Create a promotional pamphlet about managing funds

3. Purchase a surety bond for security

4. Begin immediate withdrawal for investment purposes

The correct answer is: Purchase a surety bond for security

The correct action a nursing home must take regarding patients' funds held in trust is to purchase a surety bond for security. A surety bond serves as a financial guarantee that the funds will be managed and safeguarded properly, protecting residents against potential mismanagement or loss of their funds. This requirement is essential to ensure trust and accountability in handling the financial assets of residents, providing assurance that their money will be protected and used appropriately. The other options, while potentially beneficial aspects of managing funds, do not directly address the legal and safety requirements associated with handling patients' funds. For instance, reviewing the funds annually can be a good practice for oversight but does not create a protective financial mechanism. A promotional pamphlet might help with education or transparency, but it does not fulfill the requirement of safeguarding the funds. Immediate withdrawal for investment purposes could pose risks to the security of the patients' funds and generally would not align with best practices for trust management, which prioritize the safety and immediate availability of funds for residents.