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Judges rule in favor of daughter in payment dispute with nursing facility

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A woman who signed a move-in agreement at a skilled nursing facility as a “responsible party/agent” for her mother was able to prove to the Indiana Court of Appeals she should not be liable for money owed by her mother for care while at the facility.

Alexis Hutchison, pro se, appealed a $2,610.87 judgment against her for services rendered to her mother, Martha Farber, while Farber lived at Springhurst Health Campus. Farber was ill with cancer and required a nearly three-month stay at the facility. She died Feb. 21, 2013, while this litigation was pending.

The agreement Hutchinson signed says that the responsible party/agent agrees to pay the facility the full amount of the resident’s income and resources that the responsible party/agent controls or accesses. Hutchinson’s defense at trial focused on the fact she did not have power of attorney or the authority to manger her mother’s funds. The business manager of Springhurst testified that the facility did not have any records that Hutchinson had power of attorney over her mother. Hutchinson’s husband testified that a facility representative told Hutchinson she would not be personally responsible for her mother’s bill when she signed the agreement.

In Alexis Hutchison and Martha Farber, deceased and Trilogy Health Services, LLC, d/b/a Springhurst Health Campus, 30A01-1307-SC-316, the judges pointed out that Congress has imposed limitations on the concept of a family member being financially responsible for another family member’s care. Some resident-rights advocates claim that third-party guarantee or responsible party provisions are inherently illegal, although some courts have concluded under federal law that third parties can “volunteer” to sign as guarantors of payment to nursing homes.

“It appears Indiana courts have not yet expressly spoken to the legality of the responsible party provisions; although Hutchison urges us to declare that such provisions are unenforceable, we find it unnecessary to reach that issue today,” Judge James Kirsch wrote.

The agreement doesn’t define “responsible party” but says that person agrees to pay the full amount of the resident’s income and resources “that the Responsible Party/Agent controls or accesses.” There is no evidence that Hutchinson ever had authority to “manage, use, control or access” her mother’s income, financial accounts or other resources, as written in the agreement. The trial court erred, so the Court of Appeals reversed and remanded with instructions to enter judgment for Hutchinson.
 

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  1. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  2. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  3. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  4. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

  5. Can I get this form on line,if not where can I obtain one. I am eligible.

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