Some nursing homes having billing disputes with residents have turned to the guardianship statute to resolve the issue. Judicial and legislative pressures are now mounting to prohibit them from using this method to collect payment.
There are vulnerable people (due to stroke or Alzheimer’s disease, for example) who have not planned ahead by signing a power of attorney or health care proxy. They may be unable to manage finances, prepare meals or remember to take medication. Article 81 of the Mental Hygiene Law was enacted to protect them by appointing a guardian. That statute is commonly used by concerned family members or friends to protect such a person from harm. Many such incapacitated people reside in nursing homes and have billing disputes with the facility. They now face the threat that the facility where they reside will use the guardianship statute as a debt collection statute against them.
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