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Continuing Care Fees
Most continuing care contracts call for an entrance fee and monthly service fees. An entrance fee is the consideration made by a person entering into a continuing care contract for the purpose of assuring care or related services pursuant to a continuing care contract. Monthly service fees are the fees charged to a resident for current accommodations and services. Providers, NOT the Department, determine entrance fee and monthly fee amounts.
Any change to monthly fees, however, must be based on projected costs, prior year per capita costs, and economic indicators as specified by the Health and Safety Code. Providers must give residents 30 day advance written notices to any change in monthly service fees or in the price or scope of any component of care or other services and must meet with all residents to discuss the reasons for the increase and the date used for calculating the increase. At least 14 days prior to that meeting, the provider must make available to residents comparative data showing the budget for the upcoming year, the current year's budget and actual and projected expenses for the current year.