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.
