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Entering an Old Age Home in Hong Kong: Legal and Contractual Considerations You Can’t Overlook

On the 15^th of April 2024, the Consumer Council published a critical report examining the standards, costs, and transparency of care homes in Hong Kong. While the findings highlighted several concerns such as hidden fees and inconsistent care standards, they also brought to light one of the issues underlying such concerns: vague contractual terms and families’ lack of awareness of the legal and financial complexities tied to choosing a residential care home.

Entering an old age home, whether government-subsidized or private, is a significant decision that involves more than just evaluating sufficiency of facilities, staffing and services. The contractual terms of the agreement signed with the old age home dictate everything from fees to care provisions and a resident’s rights. This is especially true for private care homes, where families often take on greater financial responsibility and need to be extra vigilant about what they’re agreeing to.

In this article, we will explore the key legal and contractual considerations that everyone should be aware of when selecting an old age home in Hong Kong.

Licensing and Accreditation

Whether you’re considering a private or subsidized care home, the first step is to ensure that the facility is properly licensed. In Hong Kong, all Residential Care Homes for the Elderly (RCHEs) are regulated under the Residential Care Homes (Elderly Persons) Ordinance (Cap. 459), which establishes minimum standards for accommodation, staffing, and care.

Beyond licensing, consider whether the home is accredited by recognized bodies like the Hong Kong Accreditation Service (HKAS). Accreditation signifies adherence to stricter standards, which may translate to better care and safer environments.  As the Consumer Council noted, homes with accreditation are more likely to invest in continuous improvements.

Fees: Transparency Is Key

The report revealed that fees in private care homes could range dramatically, from $6,000 to over $80,000 per month. Yet, these figures often exclude additional costs for consumables, medical care, or even basics like air-conditioning.  It’s vital to scrutinize the contract for clarity on:

• Base fees: Understand exactly what is covered in the monthly charges.

• Additional charges: Common extras include medical escorts, special dietary needs, or incontinence supplies like diapers. These costs can add up quickly, so be sure to ask for a detailed list.

• Refund and deposit policies: If a resident is hospitalized or chooses to leave the home early, will unused fees be refunded? Many contracts have strict rules—or none at all—around refunds, so this deserves close attention.
  
• Fee increases: Look for clauses that permit fee adjustments. While cost of living increases are common, contracts should specify the notice period and the percentage increase allowed.

In private homes, families shoulder the full financial burden, making transparency on fees even more critical.

Care Services: Will the Home Meet Evolving Needs?

One of the Consumer Council’s key concerns was the limited flexibility in care homes to accommodate changes in residents’ health. Whether the home provides basic care, nursing care, or specialized dementia care, the contract should clearly outline the services available and what happens if care needs change over time.

For example:

• Does the facility provide 24/7 nursing care?
• What happens if the resident develops mobility issues or requires end-of-life care?
• Will the home help arrange transfers to a higher-care facility if needed?

Private homes may offer more personalized care packages, but they often come at a significant cost. It’s essential to know in advance whether the care home can continue to meet your loved one’s needs or if they may require relocation later.

Termination Policies

Termination clauses vary widely between care homes, and the Council’s findings revealed a lack of consistency in how homes handle contract cancellations. Look for specifics on:

• Voluntary termination: If you decide to leave the facility, how much notice is required? What are the refund policies?
• Facility-initiated termination: Under what conditions can the home discharge a resident (e.g., inability to pay or health issues they can’t manage)?
• Eviction procedures: These should align with consumer protection laws to prevent unfair or abrupt evictions.

Private homes, in particular, may have stricter terms that favor the facility, making it critical to review these clauses with care.

Dispute Resolution: What Are Your Options?

Many contracts include clauses that require disputes to be settled through arbitration or mediation rather than court proceedings. While these processes can be faster, they are also more expensive and may limit your ability to pursue legal action if necessary. Ensure the contract outlines a clear, fair, and transparent resolution process, and familiarize yourself with resources like the Hong Kong Consumer Council, which can mediate disputes and offer advice.

Resident Rights: Legal Protections to Look For

Under the Residential Care Homes (Elderly Persons) Ordinance, residents are entitled to basic rights such as privacy, dignity, and involvement in care decisions. Private care homes often market themselves as offering “premium” services, but these rights should never be compromised. When reviewing a contract, ensure it reflects commitments to:

• Healthcare provision: The availability of on-site medical staff and emergency response systems.
• Safety and hygiene: Policies for infection control, cleanliness, and regular health checks.

The Consumer Council also encouraged families to inquire about staff-to-resident ratios, as lower ratios often result in better care.

Data Privacy and Legal Guardianship

The Consumer Council emphasized the importance of safeguarding residents’ personal and medical information, particularly in private facilities where external services may be involved. Ensure the contract complies with the Personal Data (Privacy) Ordinance (Cap. 486) and includes clear guidelines on how data will be shared or used.

If the resident has a legal guardian or power of attorney, verify that the care home recognizes these arrangements and respects the decision-making authority of the appointed representative.

Conclusion: Be Informed, Be Protected

The Consumer Council’s report serves as a powerful reminder that entering an old age home in Hong Kong is a decision with significant legal and financial implications.

If you would like to explore your options in this regard, please contact our Partner, Eunice Chiu （+852 2186 1885 / +852 9169 4356）.

Disclaimer: This article is for reference only. Nothing herein shall be construed as Hong Kong legal advice or any legal advice for that matter to any person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.

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