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Nursing Home Debt and Third Party Liability Revisited

Dec 18, 2012 My 12/20/2010 Blog set out law regarding the Nursing Home Reform Act. This law forbids a nursing home from billing a third party for care provided a resident.

There is an exception to this rule, however. The Act permists a nursing home to require a person who has access to the resident's resources to sign a contract which obliges that person to provide payment from those resources for the resident's nursing home care.

So, if you are the one controlling the nursing home resident's money, you must use that money to pay the resident's bills. If you are the one responsible for applying for Medicaid for the nursing home resident, you must do so in a timely manner.

If you do not do so, the nursing home can successfully sue you.

Take note. The money you control as Agent, Guardian, Conservator, Representative Payee is not money you control for your benefit. You control it for the benefit of the person you have been entrusted to serve.

This is called fiduciary duty.

So serve dutifully.

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