Considering Long-Term Care? The Second Thing You Need To Know

by Rebecca Fetters

We've all heard the ads for companies like A Place For Mom. Services like these are commonly known as Placement Agencies or Referral Agencies and market their ability to help you find the perfect long-term care setting for you or your loved one. While entities such as A Place For Mom are large, national companies, there are many smaller, local options as well.

Referral agencies can be convenient and efficient for individuals seeking placement options, especially when this occurs under crisis or urgent circumstances. Additionally, they are attractive as they are generally 'free' to the consumer. If you choose to utilize the services of a referral agency, there are some important things you should know.

1) In 2017 the Oregon passed legislation aimed toward consumer protection for individuals using referral agents. This legislation requires any agent or agency making over $1,000 a year to be registered with the State of Oregon, thus forming the Long-Term Care Referral Agent Registration Unit.

You should ALWAYS check to see if the referral agent you are working with is registered. You may do so by clicking here.

In addition to checking registration status, always check for complaints against anyone you are going to conduct business with at the consumer protection unit of the Department of Justice by clicking here.

2) In addition to being registered, referral agents should be background checked and are required to not share or sell your personal information without your permission. Don't be afraid to ask your agent if they adhere to these requirements.

3) Ask yourself, "If the services of the referral agency are free to you, how are they a profitable business?" Generally speaking, this is because they are receiving payment from the facility to whom they refer you. Carefully consider whether this practice is in your best interest. It could mean that the placements you are offered are not all of the options actually available, but simply the ones available at the facilities that are offering referral fees to your agent.

4) The legislation passed in 2017 addresses this potential conflict of interest by requiring all referral agents who are paid by facilities to disclose the following to you as a client:

A description of the long-term care referral to be provided by the referral agent, including the length of any contract the referral agent has with a facility regarding placement information about the client or the subject of placement;
The referral agent’s contact information, including address and phone number;
The referral agent’s privacy policy;
A statement of whether the referral agent provides referrals only to facilities with which the agent has an existing contract
A statement of whether the referral fees for the long-term care referral will be paid to the referral agent by the facility.

5) Know that referral agencies are now prohibited from making referrals to a facility in which the referral agent or an immediate family member has an ownership interest.

6) Read any contract you sign carefully. If necessary, have it reviewed by an attorney. Be aware that even if you terminate your relationship with a referral agent, they may receive compensation if you or your loved one later moves into a facility that the agent originally showed you.

As noted previously, referral agencies can be both convenient and efficient in helping you find a long-term care facility as long as you, as a consumer, are aware of their business practices and do your due diligence in selecting a referral agency.

Considering Long-Term Care? The Second Thing You Need To Know

by Rebecca Fetters

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