Assisted Living Facilities

Consumer's Guide 

Who Should Sign the Agreement? 
Often, the person in need of assisted living services will have the help and support of family members, friends, or other personal advisors. What is the role they should play in contracting for assisted living services? 
Responsible Party. Assisted living facilities will often ask for, or require, the involvement of third parties in their assisted living contract. These persons are often called the "responsible party", although other terms are also used. The term "responsible party" has no set legal definition, and the duties and obligation of a responsible party can vary widely from one facility to the next. It is important to study the specific language of the contract to clarify what the assisted living facility means when the contract refers to the responsible party. 

The responsible party might be required to make decisions on a variety of matters regarding the resident's care and living arrangements. They might be required to have access to the resident's income and resources to ensure prompt payment from the resident to the facility. Finally, they might be required to insure payment to the facility from their own funds if the resident runs out of resources to make payment. In this situation, the "responsible party" is really becoming a guarantor. The guarantor agrees to be bound, and is saying in effect, "I will pay the bill if the resident does not." 

No one, other than the resident, should sign an assisted living contract, unless they are prepared to pay the resident's bills from their own resources -- or that the contract clearly indicates that they will not be obligated to pay the resident's expenses. Ask the admission director or even better the administrator to explain what obligations are involved for anyone signing the contract. 

What if the assisted living facility refuses to accept my friend or family member as a resident unless I sign the contract? 

Most parties see pre-printed forms for their signatures that leave no room for qualifying their obligations. However, there is no reason why a prospective resident can't request to modify an agreement. Assisted living facilities are in competition with each other and if a resident has resources that the facility would like to see spent at their facility a resident does have the ability to bargain. If a third party is required to sign insist that they not be held personally responsible to ensure payment. You can sign the contract, and write in the following sentences somewhere on the contract near your signature: In signing this contract, it is understood that I do not accept any personal responsibility for the fees, costs, or charges incurred by [the resident's name]. The management of [name of facility] agrees that I will not be held personally liable for [the resident's name] 's expenses. Both you and the facility's representative should then initial this statement, by signing your initials at the end of these two sentences. 
Always obtain a copy of any contract you sign, and be sure the copy includes these sentences, with the signed initials of you and the facility's representative. 

Don't be fooled by a claim made by the facility that if the resident spends down all his or her resources he or she would be allowed to stay at the facility without making full payment. Even if the administrator or admissions director is sincere, they may have left their positions when the resident has spent all of his or her resources. If the facility can legally hold a third party responsible for payment they will. Remember, if you are a third party either don't sign, sign but as qualified above, or sign knowing that you can be held financially responsible. 



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