How to Comply with Colorado’s Referral Laws for Assisted Living Residences
With advances in AI technology, senior placement agencies have significantly increased their sales efforts, making it more important than ever to understand and adhere to the rules governing these partnerships.
As an assisted living owner, you may work with referral agencies to connect prospective residents with your facility. While these partnerships can be beneficial, Colorado law (C.R.S.A. § 6-1-729) sets specific guidelines to ensure transparency, protect residents, and maintain ethical practices. Here’s what you need to know to stay compliant:
As an assisted living owner, you may work with referral agencies to connect prospective residents with your facility. While these partnerships can be beneficial, Colorado law (C.R.S.A. § 6-1-729), passed in 2018, sets specific guidelines to ensure transparency, protect residents, and maintain ethical practices. Here’s what you need to know to stay compliant:
Who Does This Law Apply To?
Assisted Living Residences: Facilities providing room, board, and personal services to three or more unrelated adults, including care facilities for individuals with intellectual and developmental disabilities.
Referral Agencies: Individuals or entities that refer residents to assisted living facilities for a fee, whether paid by the facility or the resident.
Key Requirements for Referral Agencies
Referral agencies must disclose critical information to prospective residents or their representatives:
Relationships: Documentation of any financial, business, familial, or management ties with the referred assisted living residence.
Fees: Disclosure that the agency receives a referral fee from the assisted living residence.
Agreement Details: A written agreement with the prospective resident or their representative that includes:
The right to terminate the referral agency’s services at any time for any reason.
A requirement for the agency to inform all facilities of the cancellation if the agreement is terminated.
Obligations for Assisted Living Residences
When working with referral agencies, assisted living residences must:
Require Documentation: Ensure receipt of the signed agreement and disclosure documentation before paying any referral fees.
Maintain Records: Keep a copy of the referral agreement for at least one year after the resident is admitted.
Protect Privacy: Do not sell or transfer the prospective resident’s contact information without their written consent.
Penalties for Noncompliance
Referral agencies that violate these rules can face civil penalties of up to $500 per violation. The Colorado Attorney General or district attorneys may take legal action to enforce compliance and stop further violations.
How to Help Yourself
To ensure your facility adheres to these regulations:
Verify Documentation: Before accepting a resident referred by an agency, confirm you have all required signed agreements.
Educate Your Team: Train your staff on the importance of documentation and privacy protection.
Partner with Reputable Agencies: Work with referral agencies that understand and comply with these legal requirements.
By following these guidelines, you can build ethical partnerships with referral agencies and create a transparent, compliant process for welcoming new residents. For more insights or assistance navigating these laws, feel free to reach out to us at Pinkowski Law. We’re here to help you succeed while staying compliant.
Disclaimer
The information provided in this article is for educational purposes only and does not constitute specific legal advice. For questions or concerns regarding specific situations, contact us or another attorney for professional advice.
If you have a topic you would like to hear more about from us, write to us at info@pinkowskilaw.com.