Nursing home contract confusion

Deciding how to care for an elderly or sick loved one is difficult.  Many choose a nursing home because it has become the only option that will work for them.  According to the Virginia Department of Health, there are 265 nursing facilities in The Commonwealth.

Most of those places are certified for federal money from Medicare and Medicaid and have to follow strict government guidelines.

But at least 15 of those are not, and for them, some payment guidelines aren’t as strict.  The health department tells WSLS 10 there are no state or federal regulations that oversee billing practices in a private facility’s contract.  That is something any one of us needs to consider before signing an agreement.

Sherry Hearn’s 58 year old niece, Deborah, died last August after suffering from Alzheimer’s for about ten years.  As the trustee of her estate, Sherry had been making payments to Woodhaven Nursing Home the first of each month on her behalf, around five thousand dollars.  Because her niece died mid-way through August Sherry called Woodhaven for a two week refund on that month’s bill of $5,459.50

Sherry says, “I thought well they owe me for half a month that she was not there, and so I called the administrator and he said, no we are going to just consider it even for the whole month.  I thought no something is wrong.“

Was something wrong?

Sherry signed a contract agreeing says she could “...terminate this agreement providing a written 21 day notice…“
Sherry says, “Well how could I have given you notice she was going to pass away 21 days in advance? He said it doesn’t matter how you move her out.“

Sherry called her attorney, Ann Green.

Ann looked over the contract and says, “...21 days notice, but it doesn’t talk about what happens in the event of a death.“

Then Sherry called 10 On Your Side, because not only was her refund refused she started getting an $825.00 dollar bill for an additional five days.

“He said well that is the agreement that you signed so I have been getting bills for the additional 5 days ever since and haven’t gotten a refund for the last half of the month.“

When WSLS called David Graves, the head of Woodhaven on February 18th about Sherry’s issue, he strongly defended the contract with a 21 day notice even in the event of death.
Sherry says,“It has been a difficult time and a horrible situation to be in and most of us can’t fathom that this is happening.“

Graves told WSLS the facility had been insisting on payment after death from clients for about 6 months and that his attorneys were looking the contract over as part of a yearly review. We talked with him Monday and he says, Woodhaven no longer charges families for 21 days after their loved one dies, not even one day.  He says Sherry and any others like her will be getting a refund.

Ann says, “For Sherry it’s not about the money it is more about principle.  The contact was not clear, there was no way she could have given 21 day notice.  This is not something that she drafted, this is what Woodhaven put in front of her to sign.“

Sherry says, “I think there should be some limitations to what these homes can charge private paying individuals to protect them from having to pay this large amount of money after a person passes away.“

But, there aren’t limitations by the state or federal government on what a private pay only facility can charge you.  Some charge an up-front non-refundable deposit when you admit your loved one.   

To limit confusion, have an attorney look over the contract before you sign it. It may cost you about about 350 dollars, but could save you money in the long run.

If you are having an issue with a local nursing home, call 2-1-1 and ask for your local agency on aging’s contact information.

Click here to compare nursing homes in our area that are medicare/medicaid funded and regulated.