As many of you know, Five Star Senior Living has announced the closing of Cherry Hill Senior Living, an assisted living community in Cherry Hill, NJ. In the unfortunate COVID-19 era, there may be more closures to come. However, it is important to know New Jersey law, at least to an extent, protects current residents of AL communities that are closing, particularly those who are already on Medicaid or may shortly be transitioning to Medicaid.
Pursuant to New Jersey law, “If a facility licensed to operate as an assisted living residence or comprehensive personal care home opts to surrender its license and has promised a resident of the facility or the resident’s responsible party, in writing through a resident agreement or other instrument, or through a condition of licensure or certificate of need with the Department of Health, that it will not discharge a resident who becomes Medicaid-eligible, the facility shall escrow sufficient funds, as determined by the Commissioner of Health, to cover the cost of providing a resident with care in an alternate State-licensed assisted living residence or comprehensive personal care home for as long as the resident shall require care.”
In other words, the closing facility must pay for the former resident’s future care in another assisted living community. Below is a link to the compete statute. If you have any questions regarding the rights of residents in a New Jersey assisted living community which is closing, please feel free to contact our office.