Memory Care facility has a one year lease agreement

Jerome Likes Pie

Hi All,

After some pretty extensive interviewing and touring of Memory Care facilities, we have found one that is a great fit.  The one potential hurdle is that they require a one year lease agreement for the first year and after year one, the rental goes month to month.  The facility has a great reputation, reviews, stability, etc. so I am not too worried.  There is one unit left so we have decided to act with urgency and reserve it for move in within 30 days pending our review of the lease.

I can have our elder law attorney review the contract after I do this weekend, but I wanted to ask if anyone has any experience with one year contracts with Memory Care and what to look out for.

Thank you kindly,

Pie

Daughter80

That seems odd to me. All I have experienced were month to month for IL, AL and MC. Seems like nothing can be expected more than a month in advance with this disease. Sorry I have no direct advice though.

harshedbuzz

JLP-

I have never heard of such a thing and I toured over a dozen MCFs. I know most places will do a dive into assets available for care and expect 2-3 years of self-pay before accepting a new resident.

FWIW, my dad died rather unexpectedly 7 weeks into his residency. One of my dear friend's took her dad to a SNF only to have him pass before dinnertime. Dad's MCF prorated the month and issued a refund for the rest of the month starting when I emptied his room out. 

Having it vetted by your CELA is a good move.

HB

M1

Does seem odd.  What if she dies or required nursing home care before a year is up?  There ought to be a release clause, at least, for that contingency.

MN Chickadee

None of the facilities I toured or utilized had this lease agreement, and I spoke to at least a dozen. It was a 30 days notice arrangement. And even with that both places cut us a break and prorated the month once we cleared out of the room. You are sure it wasn’t a one year self pay obligation but an actual one year lease? What happens if for some reason she can’t live there after a month (due to death or needing a higher level of care.) You’re on the hook for tens of thousands of dollars?

GothicGremlin

I didn't encounter that with any of the MC facilities I looked at for my sister. I did encounter it with my mom-in-law. She lives in independent living though. She's very capable of making her own decisions, and she really wanted to live there, so we went over everything with her attorney, and we all decided it made sense for her, so that's where she is.

dayn2nite2

That’s a hard no for me.  Go to place #2.

Jo C.

Interesting; I have never run into that nor have I heard of such a requirement.  Personally, for myself, I would not do that.   The one MC that we used did have a 30 day notice requirement for any leaving for any reason, and if one did not give a full 30 days notice, one had to make that payment. We were desperate for placement at the time, so did enter that facility.  Ended up that they did not live up to their marketing or their self-reported ratings to Medicare.gov; had to leave for safety's sake. They tried to enforce the 30 day notice and wanted payment, but due to circumstances I did not pay, told them why I would not pay and they did not pursue it. However; an entire year - Yikes!

Wonder what other self-centered dynamics one would run into with the facility you are discussing later on after admission - WHY do they have such a requirement . . . wonder what their retention rate had been prior to that mandate. It is kind of like being imprisoned for one whole year no matter what or pay up the ransom . . . not a happy thought.

Good that you will have a Certified Elder Law Attorney look at the contract, there may be concerns within that may make a difference.

It is also good to remember that most of the data on Medicare.gov is self-reported by the care facilities themselves and no one checks to see if it is accurate or not.   That has presented problems but thus far, no fixing it.  Do let us know what your Elder LawAttorney has to say and if he/she has any insight into this facility and why the stringent lease agreement. 

J.

mommyandme (m&m)

Are they in the red? Desperate?  What’s the lease say if they decide she’s not a good fit, will they compensate you? Seems like you’d be required financially to leave your LO in the place even if they’re not caring for your LO as you’d expected.  Very sketchy IMO.

Daughter80

I do really wonder if it is a “one year private pay” rule. If a place here takes medicaid they tend to have a period where you have to private pay for for a certain length of time then you can apply for Medicaid. Maybe ask about this. And ask what their policy is for leaving? Termination fees. Etc. if you have to pay for a year but leave after a month that is way too much money. I’m hopeful for you that it is just a year of private pay that is required before being able to use Medicaid. Fingers crossed.

Jerome Likes Pie

Hi All,

Thank you so much for all of the excellent advice.  I should have provided some more information up front.

The facility is a nonprofit, and the lease does have language that provides a release in the case of death or if the tenant needs a higher level of care such as a nursing home.

The state violations track record is very strong and the management, RN, and care giver turnover is very low.  The tenant turnover is also relatively low.  

I will dig into it with my elder law attorney and a few others.

Thanks again, and I will be in touch!

Pie

Quilting brings calm

I would not do it.  The turnover rate is being artificially kept low by their one year lease policy. Sure, they allow you out if the  patient dies or needs a greater level of care.  Because they aren’t allowed to keep someone  who needs more care than they can provide   

But what if the patient or the family decides the patient doesn’t like it or that they don’t  like it? What if circumstances dictate that you need to move them closer to someone else?  There are various reasons why a family moves a patient to a different facility. Then you have no recourse because you committed to pay this place for a year.  

   

MN Chickadee

It is still odd. I would want to know why they need this. It seems like they should not need this clause, they would prevent turnover on their good reputation and care. Some people move their PWD in and realize it is not a good fit or care is not living up to expectations and move their LO. This would make that impossible and that would make me very uneasy.

Rescue mom

This is maybe a small tangent, but my legal mind wonders….they say they’ll release you from the lease if she needs a higher level of care. Who decides if a higher level is needed? How do they decide? What kind of higher care? For what needs? 

Skilled nursing is one thing, but what about a higher level of care for cognitive and behavior issues? 

dayn2nite2

Don’t do this with or without an attorney!  Go to choice #2.  Red flags all over that place.