The Continuing Care Contract
CCRC residents are supplied with housing, services, and care through the provisions of a Continuing Care contract (which is also called the Residence and Care Agreement). Within the Continuing Care industry, there are three types of CCRC contracts: extensive, modified, and fee-for-service.
These three contracts differ according to the type of housing, services, amenities, and care the individual community provides. No matter which type of contract the CCRC offers, it sets forth the legal and financial agreements between the CCRC and the resident. The contract details the accommodations, services, and care the facility is obligated to provide, and serves to protect residents in that it clearly specifies all terms and conditions of the agreements.
The contract specifically sets forth the financial obligations that new residents are assuming (i.e., the amount of the Entrance Fee and the amount of the Monthly Service Fee). The contract also includes a cancellation clause that specifies the portion of the Fees that shall be refunded if a resident leaves the community.
Of the three types of contracts, the modified contract offers several advantages. It offers residents lower up-front Entry Fees than extensive contracts, and it offers inclusive Skilled Nursing Care at rates much lower than those offered by fee-for-service contracts. Although fee-for-service contracts do offer nursing care, the cost for such care is significantly higher than that provided with a modified contract. Residents who are covered by a modified contract know they have access to:
- A range of housing accommodations
- Specialized services
- Gracious amenities
- Fine dining
- A wide variety of activities and events
- Assisted living, Memory Care, and Skilled Nursing Care
- A reduced rate for Skilled Nursing Care services, as compared to market rates
