What are assisted living contracts?

If you think haggling over the purchase price for a new car is stressful, imagine signing a contract that establishes how much you'll pay for your loved one to obtain specific caregiving services. You'll certainly want to enter into the contract phase for assisted living with a crystal clear notion of what you want and what you can expect.

Many assisted living residences operate as for-profit businesses, and even nonprofits need to allocate their resources carefully. This is of concern to you or your loved one because this means that every service requested will be at an additional cost, on top of the basic package included in the base monthly housing payment. While some facilities may include laundry and meals in the base rate, others may not.

Typically, contracts with assisted living facilities may be categorized as follows:

• Extensive: This style of contract agreement specifies a fixed monthly rate for an unlimited lifetime of assisted care. In this instance, the upfront payments will be higher so it's a bigger expense from the start. As time passes and care needs increase (as they frequently will, because of declining health), that fixed monthly rate will remain the same.
• Modified: This type of contract also provides for a fixed rate, but it's only good for a pre-established time period. This means your bill will be lower each month than it would if signed an extensive contract; however, should you need services at the termination of this contract, a new and more costly contract will need to be drawn up.
• Fee-for-service: This third form of contract works exactly the way it sounds: A resident is billed daily for every individual service requested. This contract does not provide any protection or provisions for increasing health care costs or needs-if a resident requires more services, then the resident will have to pay more. Since future costs aren't a part of the contract, in the short run, this is the most affordable contract.

Assisted living is not as expensive as a full-time nursing home care that provides round-the-clock nursing and supervision. A person who simply needs to be in a safe environment with a bit of assistance may pay about $12,000 a year, compared to the average of $50,000 per for nursing home care.

The Assisted Living Federation of America has sample contracts that you can find through easy searching on the Internet. Following is a list of items that are typically covered in a contract. You may think of other items that should be added as you tour the facility for example. Consult with an elder law attorney before signing the document.

ACCOMODATIONS

Your Apartment

Decoration and Alterations

BASIC SERVICES

Basic Services Rate

Adjustments to Rates    

Absences from Community

Security Deposit   

PAYOR INFORMATION and FUNDING SOURCE   

ADMISSIONS   

CHANGE OF ACCOMMODATIONS

Dual Occupancy

Move to New Apartment

ACCESS TO YOUR APARTMENT

YOUR    RIGHTS    AND    RESPONSIBILITIES
Rules and Regulations
No Proprietary Interests
Absences

TERMINATION    OF    AGREEMENT 
By You
By the Community
Death
Vacating Apartment and Refund 
Release From Obligations

PROPERTY OF COMMUNITY
No Tenancy Interest or Management Rights
Liability for Damage

PROPERTY OF RESIDENT

ADVANCE DIRECTIVES  

 INCOMPETENCY

 WAIVER OF ONE BREACH NOT A WAIVER OF ANY OTHER ASSIGNMENT

 FAMILY VISITS

 SEVERABILITY

 GOVERNING LAW

 ATTORNEYS’ FEES

 NOTICE

 EXHIBITS

 DESCRIPTION OF [ROOM, APARTMENT, UNIT] TO BE OCCUPIED BY RESIDENT

 SUPPLIES AND SERVICES INCLUDED IN THE COMMUNITY’S BASIC SERVICES

 RATE

 OPTIONAL SUPPLIES AND SERVICES NOT COVERED IN THE COMMUNITY’S BASIC

 SERVICES RATE - AND RELATED CHARGES

 COMMUNITY RULES AND REGULATIONS

 STATEMENT OF RESIDENTS’ PERSONAL RIGHTS

The contract is a legal document, obligating you to potentially pay very large sums of money for care. Consult with an elder law attorney before signing the document.