Texas Patient Trust Fund Bond: Facility Guide
Published March 8, 2026 ā¢ 4 min read
Managing resident funds at a Texas nursing home or assisted living facility? The Texas Department of Health and Human Services (HHS) requires a Resident Fund Bond to protect patient assets.
Patient Trust Fund Bond Quick Facts
- Official Name: Resident Patient Trust Funds Bond
- Bond Amount: Equal to average monthly balance of resident funds
- Regulating Agency: Texas Health and Human Services (HHS)
- Cost: Typically 1% of the bond amount ($100 minimum)
- Who Needs It: Nursing homes, Medicaid facilities, and assisted living providers
What is a Texas Patient Trust Fund Bond?
In Texas, healthcare facilities like nursing homes and assisted living centers often manage personal funds for their residentsāsuch as Social Security checks, pensions, or personal savings.
A Resident Patient Trust Funds Bond is a legal guarantee that these funds will be managed ethically and in accordance with state laws. If a facility mismanages or misappropriates resident funds, the bond provides a way for the residents or their families to recover those losses.
How is the Bond Amount Calculated?
The bond amount is not a fixed number. Instead, it is based on the volume of resident funds your facility manages.
- Existing Facilities: The bond amount must be equal to or greater than the average monthly balance of all resident trust fund accounts over the last 12 months.
- New Facilities: You must estimate the average monthly balance for the first 12 months of operation.
Common bond amounts range from $1,000 to $50,000, though larger facilities may require more coverage.
How Much Does a Resident Fund Bond Cost?
The cost of this bond is highly competitive. For facilities with good credit and clean management records, the annual premium is usually 1% of the total bond amount.
Estimated Annual Costs
- $10,000 Bond: $100 per year
- $25,000 Bond: $250 per year
- $50,000 Bond: $500 per year
Compliance and Management Rules
Having the bond is only one part of compliance. Texas Health and Human Services (HHS) mandates strict fund management rules:
- Separation of Funds: Resident funds must NEVER be mixed with the facility's operating funds.
- Interest-Bearing Accounts: Funds exceeding $50 must be kept in an interest-bearing account, with interest credited to the resident.
- Accounting Records: Facilities must maintain a full and separate accounting of each resident's personal funds and provide quarterly statements.
Frequently Asked Questions
Who is the obligee on the bond?
The obligee is typically the Texas Health and Human Services Commission (HHSC) or the individual residents of the facility.
Can I use a letter of credit instead of a bond?
While some regulations allow for alternatives, most facilities prefer a surety bond because it doesn't tie up their cash flow or credit lines.
Is a credit check required?
Yes, for most resident fund bonds, a soft credit check of the facility owner is part of the underwriting process to determine the 1% rate.