Responsible party clauses assign duties regarding payment, information, and decision-making. Federal regulations prohibit certified facilities from requiring a third party to personally guarantee payment as a condition of admission.
A representative with access to the resident's funds may agree to use them for care.
Alternative Names:
Responsible Party Provision, Guarantor Clause
Why it Matters?
Facilities frequently draft these clauses in terms that function as personal guarantees, which federal regulation prohibits as an admission condition. Family members later sued for unpaid balances have a direct regulatory defense. The clause is also where signing authority questions originate, since a person signing as responsible party may or may not have authority to bind the resident to other terms including arbitration.
Frequently Confused with
Related terms
Frequently asked questions
Can a facility require a family member to guarantee payment?
What may a representative agree to?
