Nursing home performance bond

[Unregistered]

A state agency requires a nursing home or long-term care facility to provide a "bond" to insure operation ability for a one year period. What type of bond would best fit that need and what type of information would be needed to obtain that bond?

[Surety Guy]

This would be a bond to guarantee a service contract. The bond would guarantee the performance of your service, hence you would be correct; a performance bond is required.

However, service contract bonds are not as easy to get an approval for as many other performance bonds since less sureties are willing to write them.

Our agency specifically has several sureties that prefer service contract guarantees. You can apply using our regular contract bond applications.

[Admin]

This question would be better answered in the Performance Bond Forum.

This forum is a sub-category of the License & Permit Forum.

[Unregistered]

I am not so sure you are talking about a performance bond. You need to contact the state agency and ask for a copy of the bond form they require and a copy of the statutes that apply. The same 'type' of bond can me different things in different states. As an example, Michigan requires a bond of nursing homes that guarantees the patiens funds held in escrow, while Florida requires nursing homes to be bonded in an amount based on medicaid payments. Again, each state may be different. There was a push a few years ago for a national bond for nursing homes and others who receive money under medicade. This would have been similar to the Florida bond; however, they withdrew the requirement in part due to difficulty getting sureties to agree with them on an appropriate bond form.
Once you have a copy of the bond form and the statutes, your surety agent should be able to talk to you about what information is needed to secure the bond.