Care Home Contracts - what to expect and what to look out for

Are you about to sign a contract with a care home? It is vital that you ensure that you understand what you are signing and that the contract clearly lays out your expectations as well as those of the care home.

Does everyone have a contract?

Yes, all residents should have a written agreement before moving into the home.  If your place has been arranged and funded by the local authority, you should still be given a copy of the contract or terms and conditions.

What will it cover?

The contract will essentially set out the terms and conditions of the care home.  This should include notification of any rules/regulations, information about what happens if your care needs change, what happens if you go to hospital for any length of time and how long fees remain payable after a rseident has passed away.

The contract should also show in clear terms what the fees are, when they are due and what they cover.  Make sure you check which services and items are not included in the fees - will you need to pay extra for dental services or visits by the hairdresser?  Who will pay for staff to accompany you on hospital or optician appointments?

The contract should also show the terms concerning deposits and refunds.  Deposits should be returnable at the end of a contract if the contract has not been broken.  Equally, if the care home has breached a term of the contract, a refund of fees should be paid to the resident.

What should I look out for?

Make sure that the contract does not have a clause excluding the care home from liability in cases where they have failed in their care and diligence of the resident or the resident's possessions.

Can I get my relative to sign for me?

Yes, a relative of someone with Power of Attorney can sign but they must be very clear about their role.  Make sure that they will not be personally liable for the fees, unless that is the arrangement.

Where can I get more advice?

Read the comprehensive advice by the Office of Fair Trading about what to look for and what constitutes fair terms in care home contracts.

This document covers all the points that you need to consider and look for before signing.  It includes:

What to think about (such as any rules the home has, the period of notice you need to give and the type of services provided)
The Contract (the terms should be clear, take your time when reading them, ensure you ask questions)
What should be in the contract (such as the basis of your stay, the fees and charges, your rights and obligations  and what happens if your needs change)
What are Unfair Terms? (such as unclear fees or imposing unfair penalties)
What to look out for (including unclear information about how much you need to pay, increases in fees without notice, terms which exclude the care home's liability for providing specific services)
Where you can get further advice.
NB - although the advice is dated 2004, the Office of Fair Trading have assured us that it is still the most current and up to date advice (Jan 2012).

Read the Fair Terms for Care advice from The Office of Fair Trading

Mark Sadler