Murfreesboro Rehab: Resident Funds Mismanaged - AR
Federal inspectors found the facility moved $20,878 in resident funds over three months without written consent from residents or their families. The money belonged to six residents who had entrusted their personal funds to the nursing home.
Administrator interviews revealed a pattern of financial mismanagement that left resident account balances incorrect every month. In June, the facility transferred $6,600 from the resident trust fund into its operational account. In July, it moved $7,000 to operations and another $200 to payroll. August saw $6,050 go to operations, $3,000 to payroll, with $2,000 moved back to the trust fund.
"At no time was the documented trust fund balance equal to the residents' personal ledger balance," inspectors wrote.
The administrator told inspectors on September 26 that she kept detailed records for only two residents — Resident #2 and Resident #6. For the other four residents receiving monthly $40 allowances, she maintained no ledger pages showing how their money was spent or distributed.
"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 during the interview. "I do it so I can write a check. I do not have checks for the resident trust fund account."
The facility was managing substantial personal funds. Resident #7 had $1,511 in their account, while Resident #6 had $1,299. Resident #2 held $1,081, and Resident #9 had $1,157. The smaller accounts belonged to Residents #5 and #8, with $893 and $887 respectively.
When residents or their representatives needed money, the administrator wrote checks from the facility's operational account rather than from the designated trust fund. She admitted to inspectors that four residents received their monthly allowances through this improper system.
The administrator acknowledged she had no written permission to mix resident money with facility funds. Federal regulations require nursing homes to keep residents' personal funds separate from operational accounts and obtain written consent before any co-mingling occurs.
"The Administrator stated she did not have written consent to co-mingle operational accounts with trust fund money from the residents," the inspection report stated.
The facility also failed to provide required quarterly statements to residents or their representatives showing account activity and balances. These statements help families track their loved ones' personal funds and identify potential problems.
During the interview, the administrator admitted unfamiliarity with federal regulations governing resident trust funds. "The Administrator stated she was not familiar with the federal regulations in this case," inspectors noted.
The practice continued for months. Each month brought the same pattern: resident funds transferred out, facility expenses paid with resident money, and checks written from operational accounts when residents needed their own funds back.
The total monthly liability remained consistent at $6,828 across the three months inspectors examined. But the facility's handling of these funds violated federal requirements designed to protect residents' personal money from institutional misuse.
Federal regulations exist specifically to prevent nursing homes from using residents' personal funds for facility operations. The rules require separate accounts, detailed record-keeping, and regular reporting to ensure residents' money stays protected.
The six residents affected by these transfers trusted the facility to safeguard their personal funds while providing care. Instead, their money became part of the facility's cash flow, moved monthly to cover operational expenses and payroll obligations.
Inspectors classified the violation as causing minimal harm or potential for actual harm, but the practice affected multiple residents over an extended period. The administrator's admission that she routinely transferred resident funds because she lacked checks for the proper account suggests the problem was systemic rather than accidental.
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 21, 2026 · Our methodology
MURFREESBORO REHAB AND NURSING, INC in MURFREESBORO, AR was cited for violations during a health inspection on November 14, 2025.
Federal inspectors found the facility moved $20,878 in resident funds over three months without written consent from residents or their families.
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.