What to know before you sign a Resident Agreement

Caregiver Planning, SHERPA Advice |

Know what you don’t know

Here we discuss what to know before you sign a Resident Agreement.  Are you considering a move to an assisted living facility? If so, you need to know which questions to ask before you sign the Resident Agreement. Before you move in, you and/or your representative along with the provider must sign the Resident Agreement. The Resident Agreement is a contract that will cover the terms that you and the provider agree to, such as Costs, Services, Fees, and Policies. Just as important is to know the Rights and Responsibilities of each party.

We recommend that you request a copy of the Resident Agreement ahead of time so that you can review it at home. You may also want to contact an elder law attorney to have the contract reviewed. Resident Agreements differ for each provider. While providers are not required to get these contracts approved by the State, regulations require that key elements are identified clearly in the contract.

A few questions to ask before signing the Residential Agreement:

  • What is the amount of the monthly fee?
  • What services are provided for the monthly fee?
  • What entrance fees (if any) are required?
  • Are there extra fees and what do they cover?
  • What is the policy on refunds (in case of transfer, discharge, etc.?)
  • When fees increase, how much notice does the resident receive and how is the information communicated?
  • What are the billing arrangements?
  • Who is responsible for payment?
  • What are the costs for renting or purchasing necessary medical equipment or supplies?
  • What happens if the resident’s funds run out?
  • Is there a charge to hold the bed if the resident is hospitalized? If so, how long will the bed be held?

These are just a few questions to consider when reading the Agreement yourself. Make sure all your questions are answered and that you know what level of care you can expect. Some aspects of the contract are negotiable and with the average cost of $4000 per month, it is critical that you understand what the contract says before signing the dotted line. Remember,  this Agreement once it is signed, it is a legal and binding contract.

Consultation with an elder law attorney may help provide more reassurance and clarity.

You can find more information about Resident Agreements by clicking on the resource found here – Caregiver Resources – a place for mom

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