SOURCE: https://canhr.org/
Federal regulations prohibit nursing homes from requesting a third-party guarantee as a condition of a resident’s admission or continued stay in the facility. See 42 U.S.C. § 483.15(a)(3). Despite the clear prohibition on imposing third party personal liability in these agreements, many nursing home agreements still contain terms that hold the signing party personally liable for damages for any breach of the agreement. As a result, friends or family members of nursing home residents have been sued for resident’s nursing home debt.
On November 18, the Centers for Medicare and Medicaid Services (CMS) updated its regulatory guidelines to emphasize this prohibition and, in effect, make it illegal for the collection of nursing home debt from a resident’s relatives and friends. The new guidance is effective February 24, 2025. Family members and friends should now be able to assist residents without fear of being sued directly for nursing home expenses. Moreover, the guidance should be a powerful basis on which to defend nursing home collection cases and lawsuits. A recent Consumer Voice podcast provides information and discussion about this CMS guideline.