Private elderly homes urged to increase transparency of fees and charges
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    Operators of private residential care homes for the elderly (RCHEs) were urged to increase transparency of fees and charges, insofar as reasonable and practicable, to further strengthen consumers' confidence and enhance their competitiveness in the market, a spokesman for the Social Welfare Department said in response to the investigation report on fees and charges of RCHEs released in the Consumer Council's Choice magazine today (May 15).

     "We are pleased to collaborate with the Consumer Council in an investigation into the fees and charges of RCHEs.  We believe that the investigation report can help consumers have a clearer understanding of the fees and charges, and services of RCHEs, as well as the matters worthy of attention when choosing private elderly homes," the spokesman said.

     He said that like any other business, RCHEs operated on commercial principles and set  fees and charges according to the mechanism of free market.  Although the level and items of fees and charges of elderly homes were not subject to regulation by the department's Licensing Office, elderly homes were still required by the Licensing Office to maintain a high degree of transparency regarding their fees and charges and the principles on which they are set.

     The Code of Practice for Residential Care Homes (Elderly Persons) requires elderly homes to give a clear explanation to the residents and their family members, relatives, guardians or guarantors on home fees, other charges, fees that were refundable and the schedule of payment.  

     The Code also recommends that elderly homes obtain written agreement from the residents and their family members, etc, to show the latter's understanding of and consent to the fees and charges to be collected.

     Regarding the prevention of embezzlement of the elders' property, the Code has clear guidelines on the procedures to observe in the holding of property on behalf of elders.  Elderly homes are not allowed to keep or hold the elders' property without the consent and authorisation of the residents and their family members, etc.

     Unless the elderly homes have set up and implemented a proper monitoring mechanism in the prevention of financial abuse or disagreement, staff of the homes are not allowed to use or withdraw money from the residents' bank accounts to settle any fees and charges.

     To enhance the awareness of the elders and related parties on the protection of the elders' property and prevention of elder abuse, the department and a number of non-governmental organisations have different training programmes to people in the management and working levels of elderly homes.  Leaflets and video compact disks introducing various kinds of elder abuse, including financial abuse, have also been distributed.

     "Earlier this month the department issued a guide on the collection of fees and charges by RCHEs to remind home operators of the need to observe the relevant provisions.  The Consumer Council Good Corporate Citizen's Guide was issued to home operators at the same time to encourage them to follow the good practices in the service sectors," the spokesman said.

     Regarding the two complaints mentioned in the report, the department will obtain further information from the Consumer Council and take follow up action.

     The department will continue to meet representatives of elderly homes/organisations of elderly homes to discuss ways to continuously improve the service quality and the licensing requirements.  The department will also continue its co-operation with the CC in the notification and referral of complaints on charges and service quality of elderly homes.

     The spokesman reminded residents of elderly homes and their family members to report any violations of elderly homes to the department's Licensing Office and the CC.  The complaint hotlines of the Licensing Office are 2961 7211 and 2834 7414.


Ends/Monday, May 15, 2006
Issued at HKT 11:47

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