Managing resident debt is an issue the team at RWK Goodman is frequently asked about. With this in mind we have put together some key points for care homes to help manage the issue.
- Implement a policy to ensure that the financial viability of privately paying residents is ascertained and fully evidenced before they come into the home.
- Review your residents contract. Ensure your contracts are clear on what the care fees are and what happens in the event that fees are unpaid, circumstances change or funding is granted or changes.
- Ensure your contracts include some form of non-payment provisions specifying how unpaid fees will be recovered and what the terminations rights are.
- Implement a robust debt management process with a set procedure for chasing unpaid fees.
- Maximise third party tops ups for both local authority and NHS top ups (yes, top ups can in some circumstances be charged for NHS funding!).
- Look at whether you can take a charge over a private resident’s home. This is often the case where a property is pending sale and can protect the home against unpaid fees accruing in the meantime.
Our team can help you with all aspects of financial health. If you would like more information please get in touch with Hazel Phillips, Partner and Head of Health and Social Care at RWK Goodman (hazel.phillips@rwkgoodman.com)