77 Ill. Adm. Code 340.1420
Contract Between Resident and Facility
Section 340
Section 340.1420Â Contract
Between Resident and Facility
a)Â Â Â Â Â Â Â Â 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 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 of the person's admission
to a facility and provided further that such a contract is executed within ten
days of the disposition of the petition.
(Section 2-202(a) of the Act)
4)
No adult shall be admitted to a facility if he objects,
orally or in writing, to such 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)Â Â Â Â Â Â Â Â The contract shall be clearly and unambiguously entitled,
"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 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 guardian, if any, and
any other person who executed the contract.
(Section 2-202(c) of the Act)
f)Â Â Â Â Â Â Â Â The contract shall be signed by the licensee or his agent.Â
The title of each person signing the contract for the facility shall be clearly
indicated next to each such signature. The nursing home administrator may sign
as the agent of the licensee.
g)Â Â Â Â Â Â Â Â The contract shall be signed by, or for, the resident, as
described in subsection (a) of this Section. 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 labelled "signature of responsible party" or
"signature of guarantor."
h)Â Â Â Â Â Â Â Â The contract shall include a definition of "responsible
party" or "guarantor" which describes in full the liability
incurred by any such 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 Public Aid.
(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)Â 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.
A paragraph shall itemize
the services and products to be provided by the facility and express the cost
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. (Section
2-202(g)(2) of the Act)
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)Â Â Â Â Â Â Â Â A paragraph shall itemize all services and products offered by
the facility or related institutions which are not covered by the rate or fee
established in subsection (m) of this Section. If a separate rate or fee for
any such supplemental service or product can be calculated with definiteness at
the time the contract is executed then such additional cost shall be specified
in the contract.
2)Â Â Â Â Â Â Â Â If the cost of any itemized service or product to be provided
by the facility or related institutions to the resident 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. But the contract shall
include a statement explaining the resident's liability for such itemized
service or product and explaining that the resident will be receiving a bill
for such itemized service or product beyond and in addition to any rate or fee
set forth in the contract.
o)Â Â Â Â Â Â Â Â The contract may provide that charges for services or products
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 any
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 of
the receipt of the written notice of the change. The written notice shall
become an addendum to the contract.
p)
The contract shall specify the sources liable for payment
due under the contract.
(Section 2-202(g)(4) of the Act)
q)
The contract shall specify the amount of deposit paid.
Such amount shall be expressed in terms of a precise number of dollars and be
clearly designated as a deposit. The contract shall specify when such deposit
shall be paid by the resident and the contract shall specify when such deposit
shall be returned by the facility. The contract shall specify the conditions
(if any) which must be satisfied by the resident before the facility shall
return the deposit. Upon the satisfaction of all such conditions the deposit
shall be returned to the resident. If the deposit is nonrefundable the
contract shall provide express notice of such nonrefundability. (Section
2-202(g)(5) of the Act)
r)
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 which complies with the
requirements of Section 2-211 of the Act.
(Section 2-202(g)(6) of the Act)
s)
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
which 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)
t)
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 the resident's 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 the resident's life.
(Section 2-202(i) of the Act)
u)Â Â Â Â Â Â Â Â All facilities which 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 (Ill. Rev. Stat. 1991, ch.
111½, par. 4161-1 et seq.) [210 ILCS 40], including the obtaining of a permit
from the Department, before they may enter into such contracts. (Section 2(c)
of the Life Care Facilities Act)
v)
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 Public Aid.
(Section 2-202(j) of the Act)
w)
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)