Murfreesboro Rehab: Financial Rights Violations - AR
Federal inspectors found the administrator had been transferring the entire monthly balance from six residents' trust funds — totaling $6,828 each month — into facility accounts ending in 3294. She moved $6,600 in June, $7,200 in July, and $11,050 in August.
The administrator told inspectors on September 26 she only kept proper ledgers for two residents. For the other four, she simply wrote $40 allowance checks to their representatives from the facility's operational account instead of their individual trust funds.
"I transfer the resident funds balance into that account at the end of every month, I guess you would say they should be in [the resident trust fund account]," the administrator said. "I do it so I can write a check. I do not have checks for the resident trust fund account."
Six residents were affected by the practice. Resident 2 had $1,081 in their account. Resident 5 had $893. Resident 6 had $1,299. Resident 7 had $1,511. Resident 8 had $887. Resident 9 had $1,157.
The transfers created a shell game with resident money. In July, the administrator moved $7,000 to operations and $200 to payroll. In August, she transferred $6,050 to operations and $3,000 to payroll, then moved $2,000 back to the resident trust fund.
At no point did the documented trust fund balance match what residents actually had in their individual accounts, inspectors found.
The administrator admitted she had no written consent from residents to mix their personal money with facility operational funds. She also confirmed the facility never issued quarterly statements showing residents or their families how their money was being handled.
Four residents — numbers 5, 7, 8, and 9 — had no individual ledger pages tracking how their money was spent or distributed to representatives. The administrator simply wrote their monthly allowance checks from whatever facility account was convenient.
When inspectors asked about federal regulations governing resident trust funds, the administrator said she was not familiar with them.
The practice violated federal requirements that nursing homes maintain resident funds separately from facility accounts and provide detailed records of all transactions. Facilities must keep individual ledgers for each resident and cannot commingle personal funds with operational money without explicit written permission.
The inspection found the facility's handling of resident money created potential for actual harm, though inspectors classified the violation as causing minimal harm. The administrator's system made it impossible to track whether residents received all money owed to them or whether facility expenses were paid with resident funds.
Resident 2 and Resident 6, the only two with proper ledgers, still had their money moved to operational accounts each month before being transferred back. The administrator would write checks to their representatives from the facility account rather than directly from their trust funds.
The other four residents had even less protection. With no individual tracking, there was no way to verify they received their correct allowances or that their money wasn't used for facility expenses.
The administrator's admission that she moved money "so I can write a check" revealed the facility prioritized convenience over federal compliance. Rather than obtaining proper checks for the resident trust account, she systematically moved thousands of dollars monthly to accounts she could access.
The violation affected some residents over multiple months, with the same pattern repeating in June, July, and August. Each month, the facility collected $6,828 from six residents' accounts, then distributed varying amounts to operational and payroll accounts based on facility needs rather than resident requirements.
Federal inspectors documented the practice as part of a complaint investigation completed November 14. The facility's handling of resident money created a system where personal funds could not be properly tracked or protected from facility use.
Full Inspection Report
The details above represent a summary of key findings. View the complete inspection report for Murfreesboro Rehab and Nursing, Inc from 2025-11-14 including all violations, facility responses, and corrective action plans.
Additional Resources
Data source: Official federal inspection data from the Centers for Medicare & Medicaid Services (CMS).
Editorial process: AI-synthesized regulatory data, reviewed for accuracy by our editorial team.
Professional review: All content reviewed by Christopher F. Nesbitt, Sr., NH EMT & BU-trained Paralegal.
Last verified: June 24, 2026 · Our methodology
MURFREESBORO REHAB AND NURSING, INC in MURFREESBORO, AR was cited for violations during a health inspection on November 14, 2025.
She moved $6,600 in June, $7,200 in July, and $11,050 in August.
Health inspections identify deficiencies that facilities must correct. Violations range from minor documentation issues to serious safety concerns. Review the full report below for specific details and facility response.