In New Jersey, assisted living facilities are increasingly facing a circumstance where, for one reason or another, they cannot meet the level of care required for the resident or the resident poses a danger to him/herself or others in the facility. New Jersey, like most states, requires a safe discharge, following adequate written notice to the resident or the responsible party (absent emergent circumstances).
A current or prospective resident does not have any liquid assets but owns a home. What can I do to make sure we get paid?
This is one of the most common questions that I get from my clients who own Assisted Living Facilities.
Once upon a time, in a real estate market long, long ago, individuals would list his or her home and upon the sale, move into an assisted living facility, meeting all of the often stringent requirements. Now, with the escalating costs of senior care, prospective residents and their families wait until the last moment before deciding whether and where to move mom and dad. Frequently, this decision coincides with the decision to list the home and the fact that they cannot wait for the proceeds from the real estate closing to move into an assisted living facility.
Although most assisted living facilities are aware that they are required to have written resident agreements, many assisted living owners and administrators fail to appreciate the significance of having an updated resident agreement that accurately represents your business interests. It is this author’s humble opinion that this is the single most important document in the long-term care industry. Frequently, clients approach me after a problem has arisen; however, it is lways recommend that clients consult me as early as possible to avoid issues regarding interpretation. Keep in mind, any benefit of the doubt will favor the resident.
If you own or operate an assisted living facility in New Jersey you need to be aware of the “spend down” provisions in your resident agreements. Or face the possibility of having to pay for the care of residents for the remainder of their life in the event that your assisted living facility closes or relocates.
