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Legal Updates

CCRCs: A Bumpy Ride for Resident Entrance Fees


July 26, 2023

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1 minute


In recent years, the restructuring community has been inundated with bankruptcies of health care-related entities, including continuing-care retirement communities (CCRC). Also known as a life-plan community, CCRCs provide a continuum of care and an amenity-rich lifestyle for senior citizens, with access to onsite higher-level care should medical needs progress. In most cases, 90 % of resident fees are refunded once the residents leave the facility and someone else has moved into their units.

In the past, resident entrance fees were assumed or repaid if the CCRC filed for bankruptcy. In recent years, however, residents and their families have faced many challenges in recovering their entrance fees. In this recent article published in the American Bankruptcy Institute Journal, Harold Israel and Sean Williams co-authored an article with Sheldon Stone of Capstone Partners to examine the trends in CCRC bankruptcy cases with respect to the repayment of resident entrance fees.

Filed under: Financial Services & Restructuring

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