What is the purpose of the California HS 402 form?
The California HS 402 form serves as a surety bond verification for licensed health facilities. It ensures that these facilities, which handle significant amounts of patient money, are financially responsible and can guarantee the honest handling of funds. This requirement is mandated by the California Health and Safety Code, specifically Section 1318.
Who is required to complete the HS 402 form?
Licensed health facilities that manage money exceeding $25 per patient or over $500 for all patients in any month must complete the HS 402 form. This includes various types of health facilities that provide care and manage patient funds.
What information must be included on the HS 402 form?
The form must include the facility name, address, and the name and address of the bonding agency. Additionally, it requires the amount of the bond, which must be no less than $1,000, and a declaration that the facility will handle patient money faithfully and honestly.
What happens if a facility fails to comply with the bonding requirement?
If a facility does not comply with the bonding requirement, it may face penalties, including the potential revocation of its license. Moreover, patients may have grounds to take legal action if they suffer damages due to improper handling of their funds.
How does a patient file a claim related to the bond?
A patient who believes they have been harmed due to improper handling of their money can file a claim in a proper court against the bond. This claim is intended to recover damages suffered as a result of the facility's actions, up to the extent covered by the bond.
What should be done in the event of a bond cancellation?
If the surety decides to cancel the bond, they must notify the California Department of Public Health Licensing and Certification Program. This notification is crucial to ensure that the licensing agency is aware of the change in the bond status.
Is the bond continuous, and how long does it remain in effect?
Yes, the bond is considered effective and continuous. It remains in force until it is canceled by the surety or until the licensing agency takes action to revoke the facility's license. This ongoing obligation is designed to protect patients consistently.