Care home huge admin fee - over a barrel?

[Dollydaydream1]

We recently took the very tough decision to move my mother into a care home. My dilemma is that mum is currently in a very nice home, where she appears happy and settled despite only having been there a few days, however I have only just found out, from reading the contract that was handed to me on the day that mum moved in, that there is a non refundable 'admin fee' which is due as soon as my mother moves from respite to permanent residency. This fee is several thousand pounds. The weekly rate is already very high, but I don't have a problem with that as this was made clear to me before we moved mum in, and it is a very nice home. My problem is that this admin fee seems to be so exorbitant, and I don't understand how they could justify this. I would have thought it is an unfair term in a consumer contract, especially as it was not made clear to me before, and I now feel that I have to pay this as my mother is happy there and I don't want to put her through extra stress and upheaval just for a point of principle. If they had told me before, I would have certainly queried it as I don't understand how this could be justified. Is there any way to challenge this, or is this common practice at all care homes?

 

[Soobee]

It doesn't sound right to me...I would recommend you take proper legal advice before signing. Is this a national chain of care homes or a single entity?

 

[Dollydaydream1]

It's a national chain. I was so shocked when I read this that I thought I must have misread the contract, but it was confirmed to me that it was correct. It has been suggested to me that I ask the home to provide a breakdown of exactly what this charge is for, however I do feel in a vulnerable position here. If mum is happy there, do I want to rock the boat and risk her losing her place. Although on the other hand, any reputable home should be happy to discuss this, and hopefully allay my concerns.

 

[love.dad.but..]

There is a NH that I looked at in my area, quite possibly the same chain, yes it was pointed out to me a hefty admin charge of several thousands, no thank you. As your mum was placed for respite it is possible they are under no obligation to bring it to your attention as it wouldn't apply at the respite stage unless you are seeking permanency which by giving you the contract they are now doing that now. Dad was a self funder at £5k + per month until he passed away and yes tbh homes can do pretty much what they want, deposits, fee increases...self funders often pay more than funded...it's a tough reality check. However I wouldn't sign unless you fully understand and agree but they may well say that's how it is. I had never managed with dads national chain NH to get anywhere.

 

[Kevinl]

I've never heard of an administration charge before, I looked at about 10 (possibly more) home and no one ever mentioned it when I asked about charges.
My wife is in a chain owned home and I've never paid an administration charge.
A few days ago the unit manager and one of the carers were taxied to and back from doing an assessment at the hospital, four hours from start to finish they told me. On admission there no doubt is a lot of paperwork for the home to do: get a DoLS, register with the home's GP and all the rest but that's should be part of the package.
The only thing I can think is that as your mum has a terminal condition the home may see they put up a lot of up front investment with possibly very little time to get their return. Very harsh but they are in business and that means turning in a profit might be their logic.
Alternatively (and more likely) some accounts has spotted another revenue opportunity and is cashing in, anyone in the house rental market will know some of the "revenue streams" that some estate agents use to maximise rental income. Come to that budget airlines aren't any better too.
K

 

[Pickles53]

It seems to be a trend these days that the basic cost is quoted and then there are additional fees, instead of all the costs being included. In your case, the fees are already high, but I suspect that if there was no separate admin fee they would just add that cost to the weekly/monthly rate which would then be even higher. I'm not surprised you are annoyed, but unfortunately if you don't feel you want to pay you will have to find another place for your mum. If you feel it's the right place, I would just swallow hard and pay.

 

[SnowWhite]

To be honest, I think they do have you over a barrel and they know it! I know other sectors charge admin fees, for example insurance providers or holiday cancellations but they usually charge £50 or something small not thousands of pounds. It's disgraceful as we are talking about an ill persons life here not a holiday booking.

I wonder whether you could ask Age UK Or your local Citizens Advice.

 

[nitram]

When looking at nursing homes in 2013 I found one that wanted one month's non returnable payment up front, however when the person left the home payment stopped the day all their belongings had been removed.
Does the home charge fees for a while after the person has left?

 

[Selinacroft]

I would be highly tempted to look around for alternative NH, even if only on temporary basis and tell them where they can stick their fees.

 

[love.dad.but..]

I think that some care/nursing homes get extra from you one way or another. Either in that way or charging a non refundable deposit as some do or as in the case of my dads home, charging up to 14 days post death no matter how quickly the room is cleared so we had to pay just over £2.500 for an empty room but it was in the contract and no one was waiting for the room . As K said most homes apply very business like methods which to us can seem immoral but totally within their rights and the home or head office be quite ruthless especially it seems to me in the dementia specialist area where options and choice are fairly limited, take it or leave it sadly.

 

[Dollydaydream1]

When looking at nursing homes in 2013 I found one that wanted one month's non returnable payment up front, however when the person left the home payment stopped the day all their belongings had been removed.
Does the home charge fees for a while after the person has

When looking at nursing homes in 2013 I found one that wanted one month's non returnable payment up front, however when the person left the home payment stopped the day all their belongings had been removed.
Does the home charge fees for a while after the person has left?

Yes there is also a 2 week charge upon death, but I think if you give notice there is no extra charge after the notice period. I have another home to view tomorrow which is much more reasonable in terms of cost and is a Friendly Society. This appeals to me alot more, but at the end of the day it's where mum is happiest that's the most important.

 

[cobden28]

You could at least ask the care home what they do for this exorbitant-sounding 'charge'....have you actually signed any sort of contract with the CH yet?

 

[Dollydaydream1]

You could at least ask the care home what they do for this exorbitant-sounding 'charge'....have you actually signed any sort of contract with the CH yet?

Yes this has been suggested to me. I haven't signed yet and am going to attempt to enter into a dialogue with the home first.