If you are engaged as a nursing home that handles residents funds operating in Louisiana, you are required by the Louisiana Department of Health and Hospitals to file an Louisiana Department of Health and Hospitals Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Louisiana Department of Health and Hospitals Bond holds you accountable for your business decisions.
By possessing a Louisiana Department of Health and Hospitals Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.