Choosing the right care facility for an aging loved one is one of the most important—and often, the most stressful—decisions a family can make. Whether it’s an assisted living facility, a memory care unit, or a skilled nursing home, the moment a senior care facility contract is presented, the fine print becomes paramount.

These contracts are legally binding documents outlining the services provided, the costs involved, and the obligations of the facility and the resident (or their representative). All too often, these contracts include vague language, hidden fees, or clauses that inadvertently strip families of their legal rights. In California, elder abuse law provides some critical protections, but being proactive and knowing what to look for before signing can prevent serious issues and heartache down the line.

Here’s what families need to know about assisted living contracts and nursing home contracts, the red flags to watch for with a keen eye, and how California law can offer a shield of protection for vulnerable seniors.

1. What Is a Senior Care Facility Contract?

A senior care facility contract is a formal, legally enforceable agreement between a resident (or their designated power of attorney, guardian, or responsible party) and a care facility. It meticulously outlines the scope of services to be provided, the associated costs, the rules and regulations of the facility, and the terms for admission, residency, and discharge. This contract is applicable whether you’re exploring an independent living community, an assisted living community, a specialized memory care unit, or a skilled nursing facility.

While these agreements may initially seem standard and straightforward, they are often far from simple. Many contain complex legal language, intricate clauses, and industry-specific jargon that can make it exceptionally difficult for the average person to fully understand the extent of what they are agreeing to. It’s crucial to remember that signing this contract has serious legal and financial implications, so careful review is essential.

2. Common Contract Clauses

Senior care facility contracts typically include several key clauses:

• Admission Criteria: Specific health conditions, medical assessments, or cognitive evaluations may be needed to qualify for residency. This may also include a requirement for a certain level of independence or the ability to perform specific activities of daily living (ADLs).
• Care Services: Detailed descriptions of the medical support, meals, personal care assistance, medication management, social activities, and staff availability. This section should be very specific about what services are included in the base rate and what services are considered “additional” and will incur extra charges.
• Fees and Payment Terms: A breakdown of the base rent, charges for add-on services, late fees, security deposits, and the procedures for how and when rate increases are handled. This should also include information about accepted payment methods and any financial assistance programs the facility participates in.
• Resident Responsibilities: This section outlines the resident’s responsibilities, such as providing updated medical records, maintaining personal hygiene, adhering to facility rules, and respecting other residents.
• Dispute Resolution: Specifies how legal disagreements or conflicts between the resident (or their family) and the facility will be handled, including procedures for filing complaints and whether mandatory arbitration is required.
• Discharge Policies: This section details the conditions under which a resident may be discharged, including non-payment, changes in health status, or violation of facility rules. It should also address notice periods and procedures for returning personal belongings.

While these clauses may appear straightforward at first glance, each can contain hidden traps and potential pitfalls that can have significant consequences for residents and their families.

3. Red Flags in Assisted Living and Nursing Home Contracts

Not all contracts are created with the resident’s best interests in mind. It’s vital to be vigilant and identify potential red flags before signing. Here are some major red flags to watch for:

• Mandatory Arbitration Clauses: These clauses force disputes to be resolved in private arbitration rather than in a court of law. Arbitration often favors the facility and can limit the resident’s ability to seek justice.
• Waivers of Liability: Some contracts attempt to limit or eliminate the facility’s legal responsibility for injury, theft, negligence, or even abuse. These waivers are often unenforceable under California law, but can be intimidating and deter families from pursuing legitimate claims.
• Unclear Fee Structures: Vague or buried language about “additional services,” “ancillary fees,” or “miscellaneous charges” can lead to unexpected and exorbitant bills. Ensure that all costs are itemized and explained.
• Automatic Renewal or Exit Restrictions: Contracts may include clauses that make it excessively difficult to leave the facility, receive refunds, or transfer to another facility, even in medical emergencies or dissatisfaction with care.
• Overbroad Authority Clauses: Some contracts grant the facility the right to make medical, financial, or personal decisions on the resident’s behalf, going far beyond what is legally appropriate or what has been authorized.
• Lack of Specificity in Care Details: If the contract is vague about the level of care to be provided, the frequency of staff checks, or the qualifications of caregivers, it can lead to inadequate care and disputes later on.
• Changes to the Contract: Be wary of clauses that allow the facility to unilaterally change the contract terms without prior notice or consent.

These red flags may be subtle and easily overlooked, but they can seriously affect your loved one’s safety, well-being, and financial security.

4. California Legal Protections

California has some of the country’s most robust and comprehensive elder protection laws. Families should be aware of these key legal protections:

• California Health & Safety Code §1568.871: This law explicitly makes it illegal for senior care facilities to include clauses in their contracts that waive liability for neglect, abuse, or any form of harm caused to residents.
• Residents’ Rights Under Title 22: California regulations, specifically Title 22 of the California Code of Regulations, guarantee residents a wide array of rights, including dignity, privacy, respect, and care that meets professional standards and addresses their individual needs.
• Right to Access Records: Residents and their legal representatives have an absolute right to access and review the contract, any amendments, and all medical and financial records related to their care at any time.
• 30-Day Notice: Assisted living facilities are required by law to provide residents with at least 30 days’ written notice before eviction, except in cases of genuine emergencies that threaten the health or safety of the resident or others.
• Elder Abuse and Dependent Adult Civil Protection Act: This Act provides legal remedies for elders who have suffered abuse, neglect, or financial exploitation. It allows for financial compensation and other legal actions against those responsible.

Even with these strong legal protections in place, some facilities may still attempt to include questionable or illegal clauses in their contracts. Being informed about your rights is the crucial first step in protecting your loved one.

5. How to Get Out of an Assisted Living Contract

Sometimes, despite careful review, things may go wrong after move-in. If the care provided does not meet expectations, if abuse or neglect is suspected, or if there are significant breaches of the contract, you may need to terminate the agreement. Here are steps to consider:

• Review the Contract Thoroughly: Carefully examine the termination clauses, notice periods, refund policies, and any conditions for early termination.
• Document Everything: Keep meticulous and detailed records of all care issues, staff interactions, billing discrepancies, and any other relevant events. Photos, videos, and written notes can be invaluable.
• Submit a Formal Termination Notice: Put your cancellation in writing, clearly stating your reasons for termination and delivering it to the facility according to the contract’s guidelines. Keep a copy for your records.
• Consult an Elder Law Attorney: If the facility is uncooperative, refuses to provide refunds, or has allegations of abuse or neglect, seeking legal counsel is essential. An attorney can advise you on your rights and legal options.
• Report Abuse or Neglect: If you suspect abuse or neglect, report it immediately to the appropriate authorities, such as the local ombudsman, Adult Protective Services, and law enforcement. If abuse or neglect is involved, you may have grounds for legal action under California’s Elder Abuse and Dependent Adult Civil Protection Act.

6. Tips for Reviewing a Senior Care Facility Contract

• Never Sign on the Spot: Take the contract home and review it carefully, without any time pressure.
• Ask Questions: If anything is unclear, request clarification in writing and ensure you receive satisfactory answers before signing.
• Consult an Elder Law Attorney: An attorney specializing in elder law can spot hidden risks, negotiate better terms, and protect your loved one’s rights.
• Look for State Disclosures: California law requires certain information to be disclosed. Ensure all the necessary disclosures are included and accurate.
• Compare Contracts: If possible, compare contracts from multiple facilities to better understand industry standards and what is negotiable.

Conclusion

A senior care facility contract is far more than just routine paperwork. It is a legally binding document that can either protect or endanger your loved one. Do not allow rushed timelines, emotional pressure, or the facility staff’s insistence to keep you from fully comprehending your agreement.

At P&P Law Firm, we specialize in protecting seniors and their families from elder abuse and unfair care facility practices. If you have questions about a senior care facility contract or need to know how to get out of an assisted living contract, we’re here to help. Contact us today for a free case review.