Sample Care Home Contract | Everything You Need to Know About Care Home Contracts

Care home contracts are important written documents that are signed by the care home itself, and whoever is paying for care fees. These contracts protect the rights of both parties and outline what one expects of the other.

Here, we’ve explained what to include in a care home contract, why they’re important and how to deal with issues relating to these contracts. We’ve also provided a sample care home contract that you and your staff can use.

Why Care Home Contracts Are Important

There should always be a written agreement in place between a care home and the person paying for care. Having a document to refer back to which outlines fees, services, notice periods and the complaints process will save a huge amount of time and potential headaches, for the home and resident alike.

Care home contracts are also important for the following reasons:

They offer legal protection - A care home contract creates a legally binding agreement between the care home and the resident. This legally protects both parties, as it outlines rights, responsibilities and obligations
They create greater transparency - By using a contract, the care home and resident alike (or the person representing them) will fully understand the terms and conditions surrounding their relationship
They set clear expectations - The resident will be fully aware of the services they can expect to receive from the home. The resident and home will both be aware of their responsibilities towards each other as well
They specify financial arrangements - A contract will outline the fees associated with any care services provided, along with the payment schedule and the consequences of late or non-payment, making it easier to manage care home finances
They ensure personal data is protected - Care homes collect, store and process the personal information of residents. A contract outlines how the home will ensure this information is protected in accordance with the relevant privacy laws
They help with termination and dispute resolution - Contracts outline the conditions through which the resident or home can terminate the agreement. This includes any notice period and the process for resolving disputes

Use Our Sample Care Home Contract

[Your Care Home's Name]

[Address]

[Phone Number]

[Email Address]

[Website]

[CARE HOME CONTRACT]

This Care Home Contract ("Contract") is entered into between [Care Home Name], located at [Address], hereinafter referred to as the "Care Home," and [Resident Name], residing at [Address], hereinafter referred to as the "Resident."

Services Provided:
The Care Home agrees to provide personal care, accommodation, meals and other services as outlined in the care plan, as mutually agreed upon by the Resident and the Care Home.
The Care Home will look after the Resident's safety, comfort, and well-being to the best of its ability.
Fees and Payment:
The Resident agrees to pay the agreed-upon fees for the care services provided by the Care Home. The fees will be outlined in a separate fee schedule and may be subject to change with prior written notice.
Payment for services shall be made in [weekly/monthly] instalments, due on [due date]. Late payments may incur additional charges or consequences as outlined in the fee schedule.
Rights and Responsibilities:
The Care Home will respect the Resident's rights, including privacy, dignity, and autonomy, to the extent consistent with the Resident's care needs and safety.
The Resident agrees to provide accurate and complete information regarding their medical history, care needs and any changes to their condition that may affect the care provided by the Care Home.
Both parties agree to maintain open and effective communication and promptly address any concerns or issues that may arise during the course of this contract.
Termination:
Either party may terminate this contract by providing written notice to the other party at least [number of days] days in advance.
The Care Home reserves the right to terminate this contract in case of non-payment, violation of care home policies, or if the Care Home is no longer able to properly meet the Resident's care needs.
Confidentiality and Data Protection:
Both parties agree to maintain the confidentiality of any personal, medical, or financial information shared during this contract.
The Care Home will handle and protect the Resident's personal data in compliance with applicable data protection laws and regulations.
Governing Law:
This contract shall be governed by and interpreted under the laws of [Country]. Any disputes arising from this contract shall be subject to Civil Justice in [Country].

By signing below, the parties acknowledge that they have read, understood, and agreed to the terms and conditions of this Care Home Contract.

[Care Home Name]

Resident Signature: _____________________

[Resident Name]

Care Home Signature: _____________________

Date: _____________________

Remember, legal documents such as care home contracts should first be reviewed by a lawyer or similar legal professional to ensure they meet all necessary legal requirements, including those specific to the UK. You should also ensure your care home’s contract covers anything specific to your particular home.

What Else Might a Care Home Contract Cover?

The care home contract template we’ve provided above is a convenient starting point that you and your staff can use. The following should also be included in your home’s contract:

Introduction - The care home’s name, address and contact information, along with the resident’s name, address and contact information
Services and accommodation provided - Include all care services the resident can expect to receive, including personal care, medication management, any specific care services, accommodation, meals and activities. The amount of care a resident requires could change over time, and this should be accounted for in the contract as well
Trial period - Details around the trial period if there is one, including the dates this is valid to and from. A trial period often lasts around 30 days, and a resident or the home can terminate the contract at short notice during this period
Fees and payment - The fees the resident will be paying should be clearly stated, along with the payment schedule (such as weekly or monthly) and due dates. Any additional fees should be included here, as well as the consequences for late payments or non-payment
Rights and responsibilities - Specify the home’s responsibilities in creating a safe environment for the resident. This part of the contract should also include the resident’s responsibilities, such as providing up-to-date information and sticking to any home policies
Termination of a contract - Specify the conditions under which the home or the resident can terminate the contract. Common conditions include non-payment, a violation of home policies or a change to the resident’s needs. The required notice period and the process for giving notice should both be included here
Confidentiality and data protection - Make the resident aware of how the care home will ensure their personal data is protected in accordance with GDPR and other personal data protection laws
Health and safety - Outline any specific health and safety policies, emergency procedures and protocols
Temporary absence - Procedures should be in place if a resident is temporarily absent from the care home (such as if they’re in the hospital). What happens to their fees and accommodation while they’re absent needs to be included in the contract
Insurance - What is and isn’t covered by the care home’s insurance. For example, residents may be able to bring their own furniture, but this furniture might not be covered by the home’s insurance
Resolving disputes - Make the process for resolving disputes clear, along with how the complaints procedure works within the care home
Unfair terms - Care home contracts must be clearly written in line with consumer law. If the contract is viewed as unfair, it won’t be valid, and can’t be legally enforced. You should outline unfair terms. These could include things like raising fees without warning, or withholding important information from the resident
Signature and date - At the end of a care home contract, leave space for the resident or the person acting on their behalf to give their signature and write today’s date

Who Is the Contract Between?

The contract will be between the care home provider and whoever is paying the care home fees. Here are the three main scenarios:

Self-funding

If somebody pays for their own care, the contract will be between them and the care home.

Local authority funding

If the local authority or council is funding somebody’s care, the contract will be between the local authority and the care home.

Shared payment or top-up fees

If the local authority is part-funding somebody’s care, but somebody else is paying the rest (a top-up fee), there will be two separate contracts. One will be between the local authority and the care home, while the other will be between the local authority and whoever is paying the top-up fee.

This often occurs when somebody wishes to live in a more expensive home than what the local authority can pay for.

Dealing With Issues Related To Care Home Contracts

If there’s a complaint before it’s been signed

A prospective care home resident or their loved one should voice any doubts and ask any questions before signing a care home contract. Some prospective residents will ask the home to amend part of the contract if they’re unhappy with it.

If there’s a complaint after it’s been signed

If an issue arises after they’ve signed a contract, they may decide to challenge it. ‘Unfair terms’ aren’t legally binding, so they may seek expert advice before switching homes or paying any fees they view as unreasonable.

A legal expert will recommend whether the resident should lodge a complaint against the care home or take legal action.

Unfair terms can be reported to:

The local Trading Standards department (this deals with the day-to-day enforcement of consumer law)
The Competitions and Markets Authority (this deals with market-wide consumer issues)

A care home’s formal complaints procedure should be clearly outlined in the contract. Care homes and their staff should also make it easy for residents to complain who wish to do so.

Frequently Asked Questions

Who signs a care home contract?

A care home contract is a written agreement between a care home provider and the person paying for care. If somebody is self-funding, they and the care home will sign a contract. If the local authority is paying for care, the contract will be signed by the local authority and the care home.

How much notice does a care home have to give?

A care home shouldn’t ask a resident to leave without consulting them, anybody assisting them or a relevant independent professional first. A resident should be given at least 28 days’ notice to leave.