If no housing guarantee is paid at the entrance to the retirement home, the approved provider may charge interest. The amount of interest is usually included in the resident contract. This amount must be paid from the date of entry until the payment of the loan. If the occupant dies within two months, the interest is still payable for a period of two months: s57.18 of the law. The purpose of this article is to provide practitioners with an overview of the issues that should be considered when a potential resident or parent seeks advice on entering institutional care, particularly with respect to residency agreements. The Aged Care Act 1997 (Act) states that a provider must give all potential residents or their representatives a accommodation agreement (agreement) before entering care. The agreement must stipulate that the person must choose to pay for the accommodation or accommodation fee through daily payments (DAP), a refundable deposit (RAD) or a combination of both within 28 days of entry. Anecdotally, it is stated that the removal of an older person from their familiar environment can severely affect their health and sense of security and should be approached with great care. There are steps a supplier can take to reduce the risk of this happening. First, ensure that appropriate financial investigations are conducted and that the requirements for the decision to pay and sign the agreement are clearly explained.
Second, try to have the agreement signed by the resident before entering the facility (note that this cannot be a requirement, since the law gives the occupant 28 days from entry to signature, but it can be promoted as usual practice). Thirdly, the inclusion in their agreement of a clause according to which the inhabitant has accepted the terms of the contract if he does not sign it within the 28-day period. If you have language difficulties because the agreements are not written in your preferred language, you can contact the Australian Government Translating and Interpreting Service (TIS) at 13 14 50. Hospital care is provided at two levels: low-level care (called hostel care) and high-level care (called nursing home care). In some cases, a hospital care service may offer one or two of these levels of care. . . .