Lawsuits in Residential Assisted Living – by Gene Guarino

(upbeat music) – Hey, it’s Gene from the
Assisted Living Network. You’re gonna get sued and let me explain why that’s no big deal at all. I know that sounds kinda
weird but the reality is in assisted living, we understand what the liabilities and the risks are. We have insurance to
protect ourselves from it. Now, reality is, I’ve never
been sued in assisted living and the reason why is not
because I have insurance to protect myself, although
that is good to have, you should do it, absolutely do it, but it’s because I do a good job. I have a great operation. When people move into our home,
they’re being taken care of. They’re being loved on. I want them to live forever. But on occasion, they do pass away. People do die and nobody
is not expecting grandma or grand dad to die. It’s just a matter of when, not if. The question is was there
some negligence along the way? were there some problem along the way? And if there was and
you’re doing a bad job, well then maybe you deserve to get sued. But if you did everything right, if you’re doing a great job and somebody, let’s say falls, breaks a
bone, goes into the hospital, two months later they pass
away, well that’s not tragic. It is sad, they do want mom to stay around and dad to be around, but I
want you to think this through and really really get this in your head. If you own a rental property
and you have a family, a mom, a dad, two kids and a
dog, and one of the kids climbs over the fence three doors
down, jumps into the pool and drowns, that’s tragic, unexpected. Nobody knew that would happen. They could sue you. The family could sue you, the landlord, the owner of that real estate. Why? ’cause your fence isn’t high enough, you didn’t have a sign that says there’s a pool two doors away. Any other frivolous reason why and they’re upset and it’s tragic. Now change, you have a home. You’re leasing it out to
Residential Assistant Living, somebody is operating this is
a group home for the elderly. Somebody in that home passes
away whether they fell and broke a hip, went to
the hospital, past away, it is sad but it’s not
tragic, it’s not unexpected, nobody expects mom or dad to live forever. As a matter of fact, they know
they’re going to pass away. It’s not a if, it’s a when. Now again, I want you to get very real. Let’s say that person living
in the senior care home, the Residential Assisted
Living has five kits. Those five kits are 50, 60 years old. Those are the kids ’cause mom or dad is 80 or 90 years old living in the home. They’re bringing mom or dad into the assisted living
home to be taken care of. They’ve come to visit mom or
dad everyday or every week. They see the caregivers,
they know them by name. They’ve eaten the food in the
dining room with mom or dad. They’ve eaten the food,
they know the caregivers, they know the manager,
they’ve been to the home, they love the experience, and every month, they’re writing a check for
5,000, 6,000, 7,000 or more for somebody, us to take
care of mom and dad. Now, they’ve been there for three years. They fall, they break their
hip, they go to the hospital and two months later, they pass away. That is sad but it’s not
unexpected, it’s not tragic. Now, let’s think about the family. Gene, aren’t they upset? Aren’t they gonna sue you because? Well, if you did a good job,
if they know who you are, if you’re doing what you’re supposed to do and doing it right,
certainly they can be upset. I mean, I was upset with my mom and dad when my mother died, when my father died, but it wasn’t let my
blame everybody for this, but now again, I want
you to think about it. Mom or dad is living in your care home. There’s five or six kids. It’s costing $6,000 a month. Three years have gone by, they’ve
paid you $200,000 and more to take care of mom and dad
over the last three years time. Mom falls, passes away. They’re upset. But some of them are actually happy that mom is in a better place. They’re happy that they’re
not spending $6,000 dollars a month of their future
inheritance every single month just whittling it away. So they’re sad on one side, and happy, not necessarily telling you so, on the other side. But even if somebody is
unhappy if they were to go into an attorney, the attorney
is gonna, they’re gonna call, they’re gonna come, they’re
gonna look at the home, they’re gonna see us, they’re
gonna see the records, they’re gonna see we did
everything we’re supposed to do. It’s all by the book, we’re
licensed, everything is there, they’re gonna realize there is no case. Now, even if they do sue,
you’ve got insurance. The insurance is a million
dollars per incident, $3,000,000 for the policy. Now that’s the insurance that is here, professional liability insurance for Residential Assisted Living. You may not even be required
to have the insurance but I highly recommend that you get it. What does it cost Gene? it
must be outrageously expensive. Nope, it’s less than a
dollar a day per resident. So ten residents, 30 days, $300 a month. It’s not medical malpractice
because there’s no doctors, nurses or gurneys, it’s not medical. Well, Gene, $300 a
month, it’s a line item. Ten residents, that means
you’re passing on that expense of that $30 per resident to them inside whatever it is you charge. In your 6000 a month, I’m sure there’s at least $30 available, if
not, you’ll raise your rate. The reality is it’s an expense, it’s a cost to doing business. I want you to have the
insurance but I also want you to relax and understand
if you do this right, I’ve not been sued. And even those that were
upset when they researched it, when they looked at it, when
they had somebody look at it, they realize there’s nothing here. It’s a natural flow of life. So again, you can rest assured that you’ll be comfortably protected if you have the right insurance,
right asset protection. There’s one more piece to this puzzle. Avoid problems before they even come. If you have a swimming pool,
you may think that’s great for mom or dad but the reality is they’re probably not gonna use it. If you have a swimming
pool and the seniors, the residents are gonna
use it, you’re gonna have to hire a caregiver who’s
also trained as a lifeguard and maybe have two of them in the pool with that senior at any given time. I don’t want that liability. I don’t want that additional expense. So a pool will have a fence
around it with a lock, maybe be emptied, or maybe
if you have access to it, will be crushed and
filled in and built over with a deck, something like that. So avoid those potential problems,
have the proper insurance and ultimately do a good job. Dot you Is and cross
your Ts for rest assured, if you do this right, that
liability is truly a non issue. Those who are running around
without the proper insurance are taking risk they shouldn’t take. Gene, I’m gonna get sued, well, maybe. But if you do and you have done it right, you’ll be okay, deep breath. This is Gene from the Assisted
Living Network saying do good and do well. If you like what you’ve seen
and heard, please subscribe.

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