Putting the Assisted Living Facility Contract Under a Microscope
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Most assisted living residences will ask you to sign an admission agreement, which is a contract, before moving in. Don’t rush to sign. You’ll want to look at the contract carefully and ask an elder-law attorney to review it. “You want to be aware of all the terms, since you may not have much recourse once you sign,” says Lori Smetanka, executive director of National Consumer Voice for Quality Long-Term Care, an advocacy group.
The cost for a legal review will vary from a few hundred dollars to a couple thousand, depending in part on where you live and the particular facility, and whether a contract may be negotiated. “If the lawyer already knows the language in a facility’s contract, it may take only an hour or so to go over the details,” says Hyman Darling, president of the National Academy of Elder Law Attorneys, a trade group.
Here are four key provisions to consider:
Cost of Service
Be sure you understand the fees listed in the contract and how they are assessed. Some facilities might charge a comprehensive fee for room, board, and care; others might have a tier of charges that kick in for higher levels of care. You are also likely to be charged a move-in fee, says Deborah Fins, an aging-life-care expert in Worcester, Mass. Most contracts are for one year, so fees are likely to increase at each renewal.
Responsible Party
If you’re signing the contract on behalf of a family member who will pay the bills, don’t let yourself become financially liable unintentionally. “Make sure you are identified as an agent, not the responsible party,” says Shirley Whitenack, an elder-law attorney in Florham Park, N.J. You should have power of attorney to act for your parent, and the term “attorney in fact” should appear after your signature.
Editor’s Note: This article also appeared in the October 2017 issue of Consumer Reports magazine.
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