• How long has the facility been in business?
  • Is the facility in good financial health?
  • How does the community calculate its financial reserves?
  • What occupancy level needs to be maintained to guarantee financial stability
  • What rights do the residents have should the community go bankrupt?
  • Does the residency agreement spell out how often and/or for what reason (e.g., increased taxes) the monthly fees can be raised? Is there a cap for increases in these fees?
  • Has the monthly fee been raised in the past? How often and for how much?
  • Is there an initial entrance fee?
  • If so, what happens to the initial "entrance fee"? What exactly is it used for?
  • If a couple moves into one unit, do both people have to pay an entrance fee?
  • Does the contract clearly spell out arrangements for the return of the initial entrance fee upon the termination of the contract?
  • What, if any, portion of the fees are directly related to health care services? (They may be tax deductible.)
  • What happens if a resident runs out of money?