Resident Agreement — Financial Content

  1. If a program requires payment of funds before admission, the funds shall be fully refundable unless the program discloses, in writing, what portion is not refundable.

B. The resident agreement shall include financial provisions, which include at a minimum:

(1) Obligations of the licensee and the resident, or the resident’s [agent] representative, as to:

(a) Handling the finances of the resident;

(b) The purchase or rental of essential or desired equipment and supplies;

(c) Arranging and contracting for services not covered by the resident agreement;

(d) Ascertaining the cost of and purchasing durable medical equipment; and

(e) Disposition of resident property upon discharge or death of the resident; and

(2) Rate structure and payment provisions covering:

(a) All rates to be charged to the resident, including but not limited to:

(i) Service packages;

(ii) Fee for service rates; and

(iii) Any other non-service-related charges;

(b) Notification of [the rate structure applicable for other levels of care provided by the assisted living program and] the criteria to be used for imposing additional charges for the provision of additional services, if the resident’s service and care needs change;

(c) Payment arrangements and fees, if known, for third-party services not covered by the resident agreement, but arranged for by either the resident, resident’s agent, or the [assisted living] program;

(d) Identification of the persons responsible for payment of all fees and charges and a clear indication of whether the person’s responsibility is or is not limited to the extent of the resident’s funds;

(e) A provision which provides at least 45 days notice of any rate increase, except if necessitated by a change in the resident’s medical condition;

(f) Fair and reasonable billing, payment, and credit policies;

(g) The procedures the [assisted living]  program will follow in the event the resident or [agent] resident’s representative can no longer pay for services provided for in the resident agreement or for services or care needed by the resident; including at least 30 days notice prior to discharge to the Department of Aging and Adult Protective Services; and

(h) Terms governing the refund of any prepaid fees or charges, in the event of a resident’s discharge from the assisted living program or termination of the resident agreement.

  1. For all resident agreements, the death of the resident shall constitute a cancellation of the resident agreement and all obligations thereunder, unless the resident agreement includes specific provisions to the contrary.

D. When the resident’s needs significantly change and the level of service provided needs to be increased or decreased, the resident agreement shall be amended by the parties to reflect the changes in services being provided and any applicable increase or decrease in charges.