Housing and Care Community Choices: Four Types of CCRC Agreements

Continuing care communities typically offer one (or more) of four types of agreements or contracts, as defined below:

Extensive, or life care, contracts provide independent living and health-related services in exchange for a price, usually consisting of an entrance and monthly fees. No additional fees are generally required as one moves from one level of service to another.

Modified contracts provide independent living and a specified amount of health-related services in exchange for an entrance fee and monthly fees. Health-related services are provided at a subsidized rate or are free for a specified number of days.

Fee-for-service contracts provide independent living and guaranteed access to health-related services in exchange for an entrance fee and monthly fees. Health-related services are provided at the going, full per diem rate.

Equity contracts involve an actual real estate purchase, with a transfer of ownership of the unit. Health-related service arrangements vary.

– North Carolina Division of Aging and Adult Services
Continuing Care Retirement Communities

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