In 1987, Congress passed the federal Nursing Home Reform Act (NHRA) in response to public attention and a study from the Institute of Medicine. Among other things, the NHRA bans third-party financial guarantees as a condition of a resident’s admission or continued stay in a nursing home. Specifically, a facility must “not request or require a third-party guarantee of payment to the facility as a condition of admission (or expedited admission) to, or continued stay in, the facility.” In other words, a nursing home cannot require a third party, such as a family member or other caregiver, to be personally financially liable for a resident’s debt.
In 2021, the median annual cost of a single room in a nursing home was $108,405, a 19% increase from 2004 after
adjusting for inflation.
The National Consumer Law Center (NCLC) and Justice in Aging conducted a survey of advocates in the consumer and aging fields between October 2023 and November 2023 about the debt collection practices they have seen employed by nursing homes. The survey asked 14 questions, and NCLC received 90 responses from 27 states and Washington, D.C.
NCLC stated in its October 2024 report entitled “Nursing Home Debt Collection Practices Put Residents’ Family And Friends At Risk“:
“The survey findings indicate that aggressive and unlawful nursing home debt collection against third parties, such as
family members, caregivers, and friends, is still occurring with few signs of stopping. The practices used by nursing
homes and their lawyers to collect on these debts have led to strained familial relationships, nursing homes seeking
guardianship of residents in violation of their rights, expensive judgments against family members and friends, and even bankruptcy. Deceptive practices during the nursing home admission process are often used to claim that families and caregivers are on the hook for any bills if payment issues arise.
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 of respondents who have seen lawsuits filed against third parties to collect nursing home debt (56%) reported seeing lawsuits filed against the residents’ children, and nearly half (49%) saw lawsuits against the residents’ spouses.
. . . .
Despite the federal prohibition, nursing homes improperly attempt to impose personal financial liability upon third-party representatives, including family and friends, for residents’ unpaid bills. Nursing homes’ aggressive debt collection practices violate federal and state law and lead to serious financial consequences for residents, their families, and friends. Federal and state officials should address the current problems by implementing some or all of the above recommendations and taking steps to enforce existing law.”
If you or a loved one may have been injured (or worse) as a result of malpractice in a nursing home in the United States due to nursing home staff shortage, nursing home understaffing, nursing home pressure ulcer (nursing home bedsore) negligence, a nursing home infection, nursing home fall, nursing home aspiration, nursing home neglect, nursing home negligence, nursing home abuse, or the nursing home failing to properly care for a vulnerable adult, you should promptly find a nursing home malpractice lawyer who may investigate your nursing home malpractice claim for you and represent you or your loved one in a nursing home malpractice case, if appropriate.
Click here to visit our website or call us toll-free in the United States at 800-295-3959 to find nursing home malpractice attorneys in your state who may assist you with your nursing home claim.
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