Update on Changes to Assisted Living Contracts

Posted on July 18, 2022 by Bobbie Guidry

LeadingAge Minnesota has received new and welcome guidance from the Minnesota Department of Health (MDH) concerning changes to assisted living contracts.

Last week we reported that the 2022 legislative session brought two changes to the content of assisted living contracts under Minnesota Statutes section 144G.50, subdivision 2.   First, the legislation says the contract must include the provider’s HFID instead of the license number. Second, the bill made the following changes to item (5) of the statute (struck-out language deleted, new language in bold):

• (5) a delineation of the grounds under which the resident may be discharged, evicted, or transferred or have housing or services terminated or be subject to an emergency relocation;

MDH had notified us it would expect all assisted living residents to receive a new contract, despite language in the legislation saying the changes are effective Aug. 1, 2022 and apply to assisted living contracts executed on or after that date.

We challenged this interpretation in a meeting earlier this week, and the Department has reversed its position.  Based on further review, MDH has determined that contracts that were executed prior to Aug. 1, 2022, will not require amendment, and MDH instead will look at all contracts executed Aug. 1 and after to apply the new statutory language. 

This decision is specific to the contract changes.  MDH does continue to expect that, in addition to providing revised Assisted Living Bill of Rights to residents, a signature acknowledging receipt of the new document is required.  See our article from last week’s Advantage relating to the Bill of Rights.