In the Courts: CCRC Cannot Require Third-Party Guarantee, Court Rules

October 26, 2012 | Aging Services Risk, Quality, & Safety Guidance

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In a case against a continuing care retirement community (CCRC), the U.S. District Court for the Southern District of Florida has found that skilled nursing facilities and nursing facilities cannot require a third-party guarantee of payment as a condition of admission or continued stay and that questions of fact remained regarding whether the CCRC had just cause to terminate the contract of a married couple.

In 2005, the plaintiffs paid a $337,500 entrance fee and moved in to the CCRC. The contract stated that residents who had financial difficulties making them unable to pay the monthly charges could remain until the rest of the entrance fee and any applicable benefits had been applied. It also stated that it would not terminate residency solely for financial inability to pay...

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