Aged Care Placement Information Directory
Site Last Updated
23rd May 2010
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Accommodation Bonds. Get the real story.
We have become aware of the following practices from
aged care providers and we believe that consumers of residential care should
be provided with the accurate information.
If you can't have us as your personal advocate by your side, at least be
informed and aware of the real story about accommodation bonds....
Practice 1 - Excessive "Predetermined"
Bonds demanded?
accommodation bonds are based upon a residents level
of assets, but when aged care providers "demand" bonds over a
predetermined level, and sometimes ranging up to $600,000, we start to get
alarmed. No resident or their family should be placed into financial duress
because of an accommodation bond.
The aged care home does not have the right to demand a predetermined bond
level. You are not actually buying anything with the accommodation bond.
It is simply an interest free loan from the resident to the facility. The
aged care provider uses the interest earned on the bond pool to maintain
their buildings and infrastructure. It is reasonable and acceptable to negotiate
the accommodation bond between the family and the aged care provider. The
level of bond paid by any resident does not have any influence over the
quality of nursing care provided by the home. Don't be bullied into paying
too much. Contact Us.
Practice 2 - "Deposits" for accommodation
Bonds?
Some aged care providers are requesting $10,000 to
$20,000 deposit! We say: No way. A resident can choose to pay the accommodation
bond as a lump sum or periodic payment (interest only). The resident and
their family have the rights to decide which option. You should not be forced
to pay a deposit if you prefer not to. Your rights are protected by the
Aged Care Act 97.
We have met concerned family members who have told us that they were anxious
and were having "sleepless nights" trying to work out ways of
how they can pay the deposit.
The solution was simple: we advocate on the families behalf with the aged
care provider. The family does not need to pay the deposit. The result -
very happy family clients with peace of mind restored.
Are you being asked to pay a deposit for an accommodation bond?
Contact Us.
Practice 3 - Belated accommodation Bonds?
Some aged care providers are allowing residents to
stay for a considerable time before requesting a higher bond than the family
realised they would need to pay. The Law Institute of Victoria has made
a submission to the Commonwealth Government to have the Aged Care Act 97
amended to effectively remove this practice by aged care providers. Read
what the Law Institute of
Victoria says about belated requests for accommodation bond payments.
Has your loved one been in an aged care home for longer than one month and
no residential care agreement or accommodation bond agreement has been signed?
Contact Us.
Practice 4 - Increasing accommodation Bonds (upselling)?
A family representative was asked to pay an extra
$200,000 bond for a husband and wife to move to "better quality"
rooms in an extra services facility in an exclusive suburb of Melbourne.
The husband and wife were already residents and simply requested a move
to rooms with access to an outside courtyard.
The demand for an additional bond payment from the aged care provider was
made after the family had verbally agreed to a first accommodation bond
level. Given that the first bond level (for the couple) was $950,000 we
formed the view that request for an additional $200,000 by the aged
care provider was just a tad "demanding".
After we discussed this matter and the implications of their request with
the aged care provider, the aged care provider retracted their demand and
the family client did not have to pay any additional bond amount.
Have you been asked to pay more bond for a "better room"? Contact
Us.
Practice 5 - Extra Service Fees in Low Care?
Are you being asked to pay an additional "extra
service" fee for a low care resident? There are very strict guidelines
on the level of hospitality services that should be provided in low care.
Usually there should be no reason to pay any additional "extra service"
fee on top of the basic daily care fee and the accommodation bond. If you
need to discuss this topic with us please Contact
Us.
Further information about
accommodation Bond Negotiation
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