What is a California Health / Skilled Care Facility Bond?
The California Department of Public Health Licensing and Certification Program requires a Skilled Care Facility Surety Bond from most facilities where the licensee handles a minimum amount of client/resident funds. Those who are typically subject to the bond requirement include adult residential, adult day programs, social rehabilitation facilities, foster family homes, foster family agencies, group home, small family home, residential care facilities for persons with chronic, life-threatening illnesses, or residential care facilities for the elderly. The bond protects those who may be damaged by unethical handling or mismanagement of client funds by the licensee facility.
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Why is a California Skilled Care Facility Bond Required?
This surety bond obligation is required of those licensed by the California Department of Public Health. The licensee shall maintain or conduct a health facility pursuant to Chapter 2, Division 2, of the Health and Safety Code of the State of California in accordance with the terms of Section 1318. The Principal is required to file with the California Department of Public Health, Licensing and Certification, the bond for benefit of the State of California. The bond ensures that the Principal shall faithfully and honestly handle money of patients in its care. Any patient injured as a result of any improper or unlawful handling of the money of a patient of a health facility may bring an action in a proper court on the bond. This bond may be canceled by the Surety in accordance with the provisions of Section 996.310 et seq. of the Code of Civil Procedure.
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