Nursing Home Contracts
Making the decision to become a nursing home resident, or to place a loved one in a nursing home, is emotional and stressful. Nonetheless, at this stressful time, a nursing home may ask that you enter into a complicated legal agreement that will bind you for years to come. Before you sign such a contract, there are some things you should know and consider. In many cases, the advice of an experienced elder law attorney is essential in determining whether the terms of an agreement are in your best interests, or whether they are simply designed to protect the nursing home.
Laws on Nursing Home Contracts Vary by State
Whether you need to sign a contract before becoming a nursing home resident varies depending upon the state in which you live. In some states, the obligations of nursing homes are set forth by law, so signing a contract may not be necessary. Other states, however, require the execution of such an agreement before a resident is admitted to a long-term care facility. An attorney experienced in elder law can advise you on whether a contract is required in your state before admission to a nursing home.
Beware of Contracts that Limit the Nursing Home's Liability
Many nursing home contracts are designed to limit the responsibility and liability of the facility. In those instances, it is generally best to avoid signing the contract if possible. Residents and their families should pay particularly close attention to contract language that limits the home's liability for harm to the residents or the residents' right to sue, such as requiring all disputes to be handled through binding arbitration. As with any other contract, you can try to negotiate the terms of a nursing home agreement to protect your rights and interests. And in most cases, a resident who has already moved into a nursing home cannot be forced to leave based on refusal to sign the contract.
Although it may be hard to believe that nursing homes would attempt to take advantage of their vulnerable residents via self-serving contractual agreements, research has shown that this is the case. In the late 1990s, the Gerontology Institute of the University of Massachusetts reviewed forty-five nursing home agreements. The results of the study were startling, even to elder advocates who were already aware of a certain degree of fraud in the nursing home business. Key findings of the study included:
- Nearly four out of ten facilities' contracts included provisions that limited the nursing home's liability for personal injury, which is against the law in many states.
- Nearly one-third of the agreements included provisions that limited liability for the actions of doctors.
- Two-thirds of the contracts included provisions that limited liability for loss or damage to personal property.
- Ninety percent included one or more provisions that contained grounds for resident discharge or transfer that are illegal.
- Over a quarter of the agreements reviewed illegally required the resident or family to pay the costs of collection or attorneys' fees.
It is important to note that nursing home contracts are written and approved by nursing home management and their counsel, and therefore represent the facility's policy. Although a court may ultimately find certain provisions unenforceable, such a result is little comfort once the harm has been done. It is far better to ensure, up front, that the facility has its residents' best interests as its foremost concern; unethical or fraudulent contracts should be a red flag that further investigation, if not outright rejection of the home, would be prudent.
Conclusion
If you are contemplating nursing home residency for yourself or a loved one, read any agreement closely before signing it to ensure that the resident's rights will be fully protected. Better yet, have an experienced elder law attorney review the contract before agreeing to its terms.
Checklist: Nursing Home Contract
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