Even though federal law prohibits nursing homes from requiring a third party to guarantee payment of their loved one’s bill, nursing homes still frequently pursue payment from friends and family. Nursing homes have been suing residents’ children, siblings, spouses, and friends for alleged debts for decades, but advocates report increased levels of aggression in recent years. A new report looks at what happens when nursing homes pursue family members and friends to collect nursing home charges, which typically run more than $108,000 per year.
Nursing Home Debt Collection Practices Put Residents’ Family and Friends At Risk analyzes a survey, conducted by NCLC and Justice in Aging, of advocates in the consumer and aging fields about debt collection practices they have seen employed by nursing homes.
The survey found that aggressive and unlawful nursing home debt collection actions against third parties impose a significant financial and emotional strain on residents’ family members, caregivers, and friends. Highlights of the survey results:
- Nearly three-quarters of respondents (72%) said they have seen admission agreements that contain clauses stating that a third party could be financially liable for nursing home debt.
- The majority (54%) of respondents indicated that they had seen nursing homes file collection lawsuits against third parties.
- Residents’ children and spouses are particularly at risk for these collection actions. The majority (56%) of respondents who have seen lawsuits filed against third parties to collect nursing home debt reported seeing lawsuits filed against the residents’ children, and nearly half (49%) saw lawsuits against the residents’ spouses.
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