Section 350.640 Contract Between Resident and Facility

Section 350

Section 350.640  Contract

Between Resident and Facility

a)         Contract Execution

1)

Before a person is admitted to a facility, or at the

expiration of the period of previous contract, or when the source of payment

for the resident's care changes from private to public funds or from public to

private funds, a written contract shall be executed between a licensee and the

following in order of priority

:

A)

The person, or if the person is a minor, his parent or

guardian; or

B)

The person's guardian, if any, or agent, if any, as defined

in Section

2-3 of the Illinois Power of Attorney Act;

or

C)

A member of the person's immediate family.

(Section

2-202(a) of the Act)

2)

An adult person shall be presumed to have the capacity to

contract for admission to a long-term care facility unless he or she has been

adjudicated a "disabled person" within the meaning of Section 11a-2

of the Probate Act of 1975, or unless a petition for such an adjudication is

pending in a circuit court of Illinois.

(Section 2-202(a) of the Act)

3)

If there is no guardian, agent or member of the person's

immediate family available, able or willing to execute the contract required by

Section 2-202 of the Act

and a physician determines that a person is so

disabled as to be unable to consent to placement in a facility, or if a person

has already been found to be a "disabled person," but no order has

been entered allowing residential placement of the person, that person may be

admitted to a facility before the execution of a contract required by

Section

2-202 of the Act

; provided that a petition for guardianship or for

modification of guardianship is filed within 15 days

after

the person's

admission to a facility, and provided further that such a contract is executed

within ten days

after

the disposition of the petition

placement of the person, that person may be

admitted to a facility before the execution of a contract required by

Section

2-202 of the Act

; provided that a petition for guardianship or for

modification of guardianship is filed within 15 days

after

the person's

admission to a facility, and provided further that such a contract is executed

within ten days

after

the disposition of the petition.

(Section

2-202(a) of the Act)

4)

No adult shall be admitted to a facility if he or she objects,

orally or in writing, to

the

admission, except as otherwise provided in

Chapters III and IV of the Mental Health and Developmental Disabilities Code,

or Section 11a-14.1 of the Probate Act of 1975.

(Section 2-202(a) of the

Act)

b)         The contract shall be clearly and unambiguously titled,

"Contract between Resident and (name of facility)."

c)

Before a licensee

enters a contract under

Section

2-202 of the Act

, it shall provide the prospective resident and his or her guardian,

if any, with written notice of the licensee's policy regarding discharge of a

resident whose private funds for payment of care are exhausted.

(Section

2-202(a) of the Act)

d)

A resident shall not be discharged or transferred at the

expiration of the term of a contract, except as provided in Sections 3-401

through 3-423

of the Act

.

(Section 2-202(b) of the Act)

e)

At the time of the resident's admission to the facility, a

copy of the contract shall be given to the resident, his or her guardian, if

any, and any other person who executed the contract.

(Section 2-202(c) of

the Act)

f)         The contract shall be signed by the licensee or the licensee's

agent.  The title of each person signing the contract for the facility shall be

clearly indicated next to each signature.  The facility administrator may sign

as the agent of the licensee.

g)         The contract shall be signed by, or for, the resident, as

described in subsection (a)

ract.

(Section 2-202(c) of

the Act)

f)         The contract shall be signed by the licensee or the licensee's

agent.  The title of each person signing the contract for the facility shall be

clearly indicated next to each signature.  The facility administrator may sign

as the agent of the licensee.

g)         The contract shall be signed by, or for, the resident, as

described in subsection (a). If any person other than the principal signatory

is to be held individually responsible for payments due under the contract,

that person shall also sign the contract on a separate signature line labeled

"signature of responsible party" or "signature of

guarantor."

h)         The contract shall include a definition of "responsible

party" or "guarantor" that describes in full the liability

incurred by that person.

i)

A copy of the contract for a resident who is supported by

nonpublic funds other than the resident's own funds shall be made available to

the person providing the funds for the resident's support.

(Section

2-202(d) of the Act)

j)

The original or a copy of the contract shall be maintained

in the facility and be made available upon request to representatives of the

Department and the Department of

Healthcare and Family Services.

(Section 2-202(e) of the Act)

k)

The contract shall be written in clear and unambiguous

language and shall be printed in not less than 12-point type.

(Section

2-202(f) of the Act)

l)

The contract shall specify the term of the contract.

(Section 2-202(g)(1) of the Act) The term can be until a certain date or

event.  If a certain date is specified in the contract, an addendum can extend

the term of the contract to another date certain or on a month-to-month basis.

m)

The contract shall specify the services to be provided under

the contract and the charges for the services

l)

The contract shall specify the term of the contract.

(Section 2-202(g)(1) of the Act) The term can be until a certain date or

event.  If a certain date is specified in the contract, an addendum can extend

the term of the contract to another date certain or on a month-to-month basis.

m)

The contract shall specify the services to be provided under

the contract and the charges for the services.

(Section 2-202(g)(2) of the

Act) A paragraph shall itemize the services and products to be provided by the

facility and express the costs of the itemized services and products to be

provided either in terms of a daily, weekly, monthly or yearly rate, or in

terms of a single fee. The contract may provide that the charges for services

may be changed with 30 days advance written notice to the resident or the

person executing the contract on behalf of the resident.  The resident or the

person executing the contract on behalf of the resident may either assent to

the change or choose to terminate the contract at any time within 30 days after

receiving the written notice of the change.  The written notice shall become an

addendum to the contract.

n)

The contract shall specify the services that may be

provided to supplement the contract and the charges for the services.

(Section 2-202(g)(3) of the Act)

1)         A paragraph shall itemize all services and products offered by

the facility or related institutions that are not covered by the rate or fee

established in subsection (m).  If a separate rate or fee for any supplemental

service or product can be calculated with definiteness at the time the contract

is executed, then the additional cost shall be specified in the contract

) of the Act)

1)         A paragraph shall itemize all services and products offered by

the facility or related institutions that are not covered by the rate or fee

established in subsection (m).  If a separate rate or fee for any supplemental

service or product can be calculated with definiteness at the time the contract

is executed, then the additional cost shall be specified in the contract.

2)         If the cost of any itemized service or product to be provided

to the resident by the facility or related institutions cannot be established

or predicted with definiteness at the time of the resident's admission to the

facility or at the time of the execution of the contract, then no cost for that

service or product need be stated in the contract.  However, the contract shall

include a statement explaining the resident's liability for the itemized

service or product and explaining that the resident will be receiving a bill

for the itemized service or product beyond and in addition to any rate or fee

set forth in the contract.

3)         The contract may provide that the charges for services and

products not covered by the rate or fee established in subsection (m) may be

changed with 30 days advance written notice to the resident or the person

executing the contract on behalf of the resident.  The resident or the person

executing the contract on behalf of the resident may either assent to the

change or choose to terminate the contract at any time within 30 days after

receiving the written notice of the change.  The written notice shall become an

addendum to the contract.

o)

The contract shall specify the sources liable for payments due

under the contract.

(Section 2-202(g)(4) of the Act)

p)         Deposit Provisions

1)

The contract shall specify the amount of deposit paid.

(Section 2-202(g)(5) of the Act)

2)         The amount of the deposit shall be expressed in terms of a

precise number of dollars and be clearly designated as a deposit

dendum to the contract.

o)

The contract shall specify the sources liable for payments due

under the contract.

(Section 2-202(g)(4) of the Act)

p)         Deposit Provisions

1)

The contract shall specify the amount of deposit paid.

(Section 2-202(g)(5) of the Act)

2)         The amount of the deposit shall be expressed in terms of a

precise number of dollars and be clearly designated as a deposit.  The contract

shall specify when the resident shall pay the deposit, and when the facility

shall return the deposit.  The contract shall specify the conditions (if any) that

the resident shall satisfy before the facility shall return the deposit.  When

all of the specified conditions are satisfied, the facility shall return the

deposit to the resident.  If the deposit is nonrefundable, the contract shall

provide express notice of nonrefundability.

q)

The contract shall specify the rights, duties and

obligations of the resident, except that the specification of a resident's

rights may be furnished on a separate document

that

complies with the

requirements of

Section 2-211 of the Act

.

(Section 2-202(g)(6) of

the Act)

r)

The contract shall designate the name of the resident's

representative, if any.  The resident shall provide the facility with a copy of

the written agreement between the resident and the resident's representative

that

authorizes the resident's representative to inspect and copy the resident's

records and authorizes the resident's representative to execute the contract on

behalf of the resident required by

Section 2-202 of the Act

.

(Section 2-202(h) of the Act)

s)

The contract shall provide that if the resident is

compelled by a change in physical or mental health to leave the facility, the

contract and all obligations under it shall terminate on seven days notice.

No prior notice of termination of the contract shall be required, however,

in the case of a resident's death

he resident required by

Section 2-202 of the Act

.

(Section 2-202(h) of the Act)

s)

The contract shall provide that if the resident is

compelled by a change in physical or mental health to leave the facility, the

contract and all obligations under it shall terminate on seven days notice.

No prior notice of termination of the contract shall be required, however,

in the case of a resident's death.  The contract

shall also provide that

in all other situations, a resident may terminate the contract and all

obligations under it with 30 days notice.  All charges shall be prorated as of

the date on which the contract terminates, and, if any payments have been made

in advance, the excess shall be refunded to the resident. This provision shall

not apply to life-care contracts through which a facility agrees to provide

maintenance and care for a resident throughout the remainder of his

or her

life nor to continuing-care contracts through which a facility agrees to supplement

all available forms of financial support in providing maintenance and care for

a resident throughout the remainder of his or her life.

(Section 2-202(i)

of the Act)

t)          All facilities that offer to provide a resident with

nursing

services, medical services or personal care services, in addition to

maintenance services,

conditioned upon the transfer of an entrance fee

to the provider of such services in addition to or in lieu of the payment of

regular periodic charges for the care and services involved,

for a term in

excess of one year or for life pursuant to a life care contract, shall meet all

of the provisions of the Life Care Facilities Act, including obtaining a permit

from the Department, before they may enter into life care contracts

an entrance fee

to the provider of such services in addition to or in lieu of the payment of

regular periodic charges for the care and services involved,

for a term in

excess of one year or for life pursuant to a life care contract, shall meet all

of the provisions of the Life Care Facilities Act, including obtaining a permit

from the Department, before they may enter into life care contracts. (Section

2(c) of the Life Care Facilities Act)

u)

In addition to all other contract specifications contained

in this

Section

, admission contracts shall also specify:

1)

whether the facility accepts Medicaid clients;

2)

whether the facility requires a deposit of the resident or

his family prior to the establishment of Medicaid eligibility;

3)

in the event that a deposit is required, a clear and

concise statement of the procedure to be followed for the return of such

deposit to the resident or the appropriate family member or guardian of the

person;

4)

that all deposits made to a facility by a resident, or on

behalf of a resident, shall be returned by the facility within 30 days of the

establishment of Medicaid eligibility, unless such deposits must be drawn upon

or encumbered in accordance with Medicaid eligibility requirements established

by the Illinois Department of

Healthcare and Family Services.

(Section 2-202(j) of the Act)

v)

It shall be a business offense for a facility to knowingly

and intentionally both retain a resident's deposit and accept Medicaid payments

on behalf of the resident.

(Section 2-202(k) of the Act)