We’ve found an aged care home for my parent. What agreements do we need to sign, and what should we know about them
Helping your parent transition to an aged care home is a significant step, and it’s important to feel confident and informed about the process. When your parent accepts a place in an aged care home, there are typically two or three agreements to formalize the arrangement. These agreements outline care services, costs, and rights, helping ensure everything is clear and transparent.
1. The Resident Agreement
This is the main legal agreement and covers the following key details:
- Care and Support Services:
- Outlines the care and support services the aged care home will provide.
- Includes how they will meet your parent’s current and future care needs.
- Costs:
- Details the basic daily fee, any means-tested care fee, and fees for additional services if applicable.
- If your parent opts for any extra services, a regular itemized account will be provided.
- Rights and Responsibilities:
- Sets out your parent’s rights and responsibilities, along with those of the aged care home.
- Includes the process for raising concerns or complaints.
- Security of Tenure:
- Describes how the aged care home will support your parent if their care needs change ("ageing in place").
- Outlines the conditions under which your parent may be asked to leave and how to move to another facility.
- Miscellaneous:
- Policies on visitors and any other matters agreed upon with the aged care home.
2. The Accommodation Agreement
This agreement focuses on the details of the room and payment options:
- Room Details:
- Specifies the room type and features.
- Room Price:
- Clearly states the agreed room price (cannot exceed the published price).
- Eligibility for government assistance with accommodation costs is determined by a means assessment.
- Payment Options:
- You can choose to pay via:
- A refundable lump sum (RAD – Refundable Accommodation Deposit)
- Daily rental-style payments (DAP – Daily Accommodation Payment)
- A combination of both
- You have 28 days from entry to decide how to structure payments.
- You can choose to pay via:
- Room Changes:
- Policies on changing rooms if necessary.
3. The Extra Services Agreement (If Applicable)
This agreement only applies if the aged care home has extra service status:
- Extra Services Fee:
- Covers upgraded hotel-style services such as premium meals, furnishings, and amenities.
- Outlines the associated costs for these extra services.
Signing the Agreements
- Signing:
Once you understand the terms, you can sign the agreements to confirm acceptance. There’s no specific deadline for signing the resident agreement, but doing so promptly helps formalize rights and responsibilities. - If Your Parent Cannot Sign:
If physical or medical reasons prevent signing, a legal representative (such as someone with power of attorney) can sign on their behalf. - Choosing Not to Sign:
If your parent chooses not to sign, they can still enter into a verbal agreement. The aged care home will document the reasons and the agreed services. - Cooling-Off Period:
There’s a 14-day cooling-off period to change your mind. If your parent decides to withdraw within this period, notify the aged care home in writing. They will refund any payments made, minus the cost of services provided during that time.
Who Can Help You Understand the Agreements?
- Ask the Aged Care Home:
The provider should explain the agreements clearly and answer any questions. - Family, Friends, or Legal Professionals:
Trusted individuals can help review the agreements to ensure they’re fully understood. - Advocacy Services:
The Older Persons Advocacy Network (OPAN) offers free support and can help with understanding agreements, care plans, and fees.
Final Thoughts
These agreements are important in ensuring your parent’s care needs and rights are protected. Take your time to review them, ask questions, and seek support if needed. You’re doing a wonderful job supporting your parent through this process, and these agreements are here to provide clarity and peace of mind.
