Nevada Health Care Facility Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Nevada Health Care Facility bond
At a Glance:
- Lowest Cost: $100 per year, based on the applicant’s credit
- Bond Amount: Based on the facility’s number of employees:
- $5,000 for 1-6 employees
- $25,000 for 7-24 employees
- $50,000 for 25+ employees
- Who Needs it: Certain health care facilities operating in Nevada (more on this later)
- Purpose: To ensure that patients will receive compensation for financial harm if the facility damages their property
- Who Requires the Bond: The Nevada Department of Health and Human Services Division of Aging & Disability Services
Background
Nevada statute 449-040 requires health care facilities operating in the state to obtain a license with the Department of Health and Human Services Division of Public and Behavioral Health. The Nevada legislature enacted the licensing requirement to ensure that health care facilities engage in ethical business practices. To provide financial security for the enforcement of the licensing law, health care facilities regulated under this statute must purchase and maintain a surety bond to be eligible for licensure. Additionally, federal statute 483.10 requires all long-term care facilities that hold resident funds in a trust account to purchase a surety bond or other similar form of security. However, the federal regulation leaves the implementation and enforcement of this requirement to individual states.
What is the Purpose of the Nevada Health Care Facility Bond?
Nevada requires certain health care facilities to purchase a surety bond as a prerequisite to obtaining a business license. The bond ensures that patients of the facility will receive compensation for financial harm if the facility fails to abide by the regulations outlined in Nevada statute 449.065. Specifically, the bond protects patients if the facility damages their property. In short, the bond is a type of insurance that protects patients if the health care facility violates licensing laws.
How Can an Insurance Agent Obtain a Nevada Health Care Facility Surety Bond?
BondExchange makes obtaining a Nevada Health Care Facility bond easy. Simply log in to your account and use our keyword search to find the “health care” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Who is Required to Purchase the Bond?
Nevada statute 449.065 requires “each facility for intermediate care, facility for skilled nursing, peer support recovery organization, residential facility for groups, home for individual residential care, agency to provide personal care services in the home and agency to provide nursing in the home” to purchase and maintain a surety bond prior to receiving a business license.
For the purposes of this page, “health care facilities” exclusively refers to the above facility types.
Is a Credit Check Required for the Nevada Health Care Facility Bond?
Surety companies will run a credit check on the owners of the health care facility to determine eligibility and pricing for the Nevada Health Care Facility bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Nevada Health Care Facility Bond Cost?
The Nevada Health Care Facility bond can cost anywhere between $100 to $3,750 per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. BondExchange also offers monthly pay-as-you-go options for these bonds. The chart below offers a quick reference for the bond cost on the $5,000, $25,000, and the $50,000 bond requirements.
$5,000 Health Care Facility Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 650+ | $100 | $10 |
| 625 – 649 | $150 | $15 |
| 575 – 624 | $188 | $19 |
| 550 – 574 | $250 | $25 |
| 500 – 549 | $400 | $40 |
$25,000 Health Care Facility Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $250 | $25 |
| 625 – 679 | $375 | $38 |
| 575 – 624 | $938 | $94 |
| 550 – 574 | $1,250 | $125 |
| 500 – 549 | $1,875 | $188 |
$50,000 Health Care Facility Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $500 | $50 |
| 625 – 679 | $750 | $75 |
| 575 – 624 | $1,875 | $188 |
| 550 – 574 | $2,500 | $250 |
| 500 – 549 | $3,750 | $375 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Nevada statute 449.065 requires “each facility for intermediate care, facility for skilled nursing, peer support recovery organization, residential facility for groups, home for individual residential care, agency to provide personal care services in the home and agency to provide nursing in the home” to purchase and maintain a surety bond prior to receiving a business license.
For the purposes of this page, “health care facilities” refers exclusively to the above facility types.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Health Care Facilities Apply for a License in Nevada?
Health care facilities in Nevada must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Nevada Health Care Facility Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Determine the License Type
Nevada requires health care facilities to obtain a specific license corresponding to the nature in which the facility operates. Below are the different types the Nevada Health Care Facility License:
***There are additional health care facility license types that are not featured below. However, none of these additional facilities are required to be bonded and are therefore not pertinent to this article. A full list of Nevada Health Care Facility License types can be found here.***
-
- Residential Facilities for Groups
- Home Health Agency
- Homes for Individual Residential Care
- Facility for Intermediate Care
- Intermediary Service Organization
- Intermediate Care Facilities for Mental Retardation or Developmental Disabilities
- Facilities for Refractive Surgery (separate bond requirement)
- Personal Care Agencies
- Skilled Nursing Facilities
Step 2 – Purchase a Surety Bond
Health care facilities must purchase and maintain a surety bond with a limit based on the facility’s number of employees:
-
- $5,000 for 1-6 employees
- $25,000 for 7-24 employees
- $50,000 for 25+ employees
Step 3 – Purchase Insurance
Health care facilities are required to obtain insurance prior to receiving a license. Contact the Division of Public and Behavioral Health to determine the required limits for your customer’s specific facility type.
Step 4 – Complete the Application
All Nevada Health Care Facility License applications should be completed online here. Facilities must complete the application in its entirety, and submit the following items:
-
- Evidence of zoning approval
- Facility’s lease agreement (if applicable)
- Bill of sale (for change of ownership applicants)
- Company formation documents (including all bylaws and operating agreements)
- 3-year business history (if less than three years provide resumes and 3 reference letters for all company officers)
- Financial status statement
- Copy of the license and 3 letters of reference for the facility’s administrator
- Forms indicating all employees and contractors comply with Nevada statute 449.174
- Medical labs attestation
- The facility’s floor plan with dimensions
- Plan review application (for initial applicants and new construction or remodeling)
- Photograph of the facility
- Renewal attestation sheet
- Background check information
Each facility type has differing requirements that may not be included in the above information. Applicants are encouraged to examine the application checklist for their specific facility type located in Step 1. Additionally, facilities must pay a license fee when submitting their application. The required fee can be found in the facility’s application checklist.
Step 5 – Pass Inspection
All facility types must pass an inspection conducted by the State Fire Marshall. The Marshall will provide the facility with a Certificate of Compliance after they have passed the inspection.
Step 6 – Enroll as a Medicaid Provider
Facilities that plan on accepting Medicaid reimbursements must enroll as Medicaid providers. The enrollment application can be completed online here.
Step 7 – Enroll as a Provider with the Aging and Disability Services Division
Facilities seeking to enroll as a provider with the Aging and Disability Services Division can do so by contacting the division and obtaining a provider application.
How do Nevada Health Care Facilities Renew Their Licenses?
Prior to the expiration date, the Division of Public and Behavioral Health will contact the facility with instructions on how to renew their license. All Nevada Health Care Facility Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Health Care Facilities in Nevada?
Nevada requires health care facilities to purchase insurance. Contact the Division of Public and Behavioral Health to determine the required limits for your customer’s specific facility type. Health care facilities must purchase and maintain a surety bond with a limit based on the facility’s number of employees:
- $5,000 for 1-6 employees
- $25,000 for 7-24 employees
- $50,000 for 25+ employees
How Do Nevada Health Care Facilities File Their Bond?
Health Care Facilities should submit their completed bond form, including the power of attorney, online here. The surety bond requires signatures from both the surety company that issues the bond and from a representative of the nursing facility. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Date the bond is signed
- Date the bond goes into effect
What Can Nevada Health Care Facilities Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, health care facilities in Nevada must ensure that they do not damage the personal property of patients.
What Other Insurance Products Can Agents Offer Health Care Facilities in Nevada?
Nevada requires health care facilities to purchase insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Nevada Health Care Facility Customers?
Nevada conveniently provides a public database to search for active health care facilities in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.