Demystifying Nursing Home Contracts

Any time you sign a contract, it is important you understand every clause and what it will entail. When you are signing a nursing home contract on behalf of a loved one, it is even more important. You want them to receive the best care, and you also want to make sure you understand all the charges they will be responsible for and that you and your loved one don’t get taken in by some common pitfalls. If you’re not a lawyer, a nursing home contract can be difficult to understand, so today, the team at Slutsky Elder Law would like to help take the mystery out of some common nursing home contract clauses and tell you what to look for.

We consider these clauses to be must-haves in any nursing home contract:

  • Basic Daily Service Rate – Most nursing homes will charge a daily rate for care in their facilities. This rate should be clearly defined in the contract, as should the structure and timing of any future price increases. You should also look for any items that are not included in the basic daily rate and make sure they are clearly expressed so you don’t run into any surprises when the bill comes.
  • The Right to Apply for Medicare/Medicaid – Many seniors depend on government assistance to pay for their nursing home costs. Some nursing homes are reluctant to accept residents who are likely to need Medicaid. If they do not accept Medical Assistance, it should be expressly mentioned in the contract.
  • The Right to Appeal Medicare/Medicaid Decisions – In some cases, receiving government assistance for nursing home expenses is dependent on the resident’s need for skilled nursing care. If Medicare or Medicaid decides that skilled care is no longer needed, the nursing home may try to discharge your loved one. A nursing home that accepts Medicare and Medicaid should allow your loved one to continue receiving care while these decisions are being appealed, and they will mention that right in their contract.
  • Who is Responsible for Payment – Prior to the passage of the Nursing Home Reform Act, family members would often be forced to co-sign the agreement, making them responsible for any expenses not paid by the nursing home resident. Such practices are now illegal, so if the nursing home’s contract does not include a clause specifically outlining that only the resident is responsible for payment, you may want to reconsider signing it.
  • Conditions for Removal – A resident should be removed from a nursing home only in the following circumstances:
    • Their removal is necessary for their own welfare;
    • They no longer require  a nursing home level of care;
    • Their presence creates a danger to other residents;
    • They fail to pay, and their failure to pay is unreasonable;
    • The nursing home is no longer in operation.

If the nursing home contract you are reviewing includes any other conditions for a resident’s removal, it is in violation of federal law.

Have Your Nursing Home Contract Reviewed by a Elder Care Lawyer

As we noted, nursing home contracts can be confusing for those who don’t speak legalese. If you want to ensure your loved one will be protected, receive the best care, and that you won’t be made responsible for any unreasonable charges, it’s best to have any contract examined by an elder care lawyer before you sign it.

Robert Slutsky, Esq. has dedicated his practice to legal issues concerning the elderly for more than 30 years, making him one of the most experienced elder law attorneys in the Philadelphia, PA, area. If you need someone to look over a nursing home contract, Rob has the specialized knowledge it takes to ensure everything is above board. Before you sign on the dotted line, get in touch with Slutsky Elder Law to request a consultation via our form or by calling (610) 940-0650 today.

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