Health care clinic surety bonds are required when a health care clinic is owned in part by a nonimmigrant alien. These bonds help to ensure clinics are compliant with state and federal law and protect the public from financial loss.
What is a Health Care Clinic Surety Bond?
A health care clinic surety bond is a surety bond that’s required by the Agency for Health Care Administration (AHCA) for nonimmigrant aliens who have a controlling interest in a health care clinic.
The AHCA has put these bond requirements in place to ensure that all health care facilities operate within the law and abide by the rules and regulations governing their industry. They also protect the public from any financial losses that may result from fraudulent business practices.
The health care clinic surety bond is specifically required by the State of Florida where statutes oblige qualifying clinics to get bonded before they can offer medical services. In the State of Florida, this bond is required for a number of health care license applications, including renewal and change of ownership.
Once a clinic has arranged a bond through a surety company – and met all other federal government requirements - the Florida Agency for Health Care Administration will then issue the clinic with a license.
Health care providers in other parts of the country may also need to take out commercial surety bonds in order to be compliant with state and federal law when offering medical services.
For example, a home health agency operating in any part of the US will need to post a bond to participate in Medicaid and Medicare programs. Separate bonds are required for each program. These are just some of the different types of bonds used in the healthcare industry.
Questions about Health Care Clinic Surety Bond
How Much Does a Health Care Clinic Surety Bond Cost?
The bond amount required for a Florida health care clinic surety bond is $500,000. However, clinics will only pay a fraction of this. In most cases, the bond cost – the amount clinics need to pay - will be between $5,000 to $15,000 per year.
If an applicant has a poor credit rating, they may need to pay a higher premium to secure their bond. Some surety companies offer specialist bad credit programs to help those with a difficult financial history to get bonded. In most cases, bad credit bonds will cost significantly more than bonds for customers with good credit. Contact your surety company to find out more.
How Can I Apply for a Health Care Clinic Surety Bond?
If you need to arrange a health care clinic surety bond as part of the licensure process, contact a surety company for a bond quote. The surety company is the body underwriting your bond and it’s them who will decide exactly how much your bond will cost.
Your chosen surety experts will be able to talk you through the process and ensure you have your bond as quickly as possible. You’ll need to renew your Florida surety bond every year to stay compliant with state regulations.
Do I Need a Health Care Clinic Surety Bond?
If you’re a nonimmigrant alien with a controlling interest in a health care clinic, you’ll need to get bonded to be compliant with Florida state law.
A nonimmigrant alien is someone who’s in the US legally for a specific purpose but who is not a resident. Most nonimmigrant aliens are students, tourists, business travelers or temporary workers.
You’ll be considered to have a controlling interest in a health care clinic if you own 5% or more of the business.
If both of these apply to you, the Florida AHCA (the obligee) will require you to get bonded before it will process your clinic’s license applications. Medical health care clinic surety bonds are always $500,000. You’ll need to purchase and maintain your bond in order to remain compliant with Florida statutes.
Florida also requires nonimmigrant aliens who own home health agencies, or who are home medical equipment providers, to purchase a surety bond prior to the issuance of a business license.
Contact the Florida AHCA to find out more about license requirements and to check if any exemptions apply.
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