Beijing Officially Endorses Elderly Care Membership Model with Unspecified Deposit Limits

Nov 23, 2018 11:23 CST Updated 11:23

VCBeat (WeChat Official Account:vcbeat) learned that,Today, the Beijing Municipal Civil Affairs Bureau released the “Measures for the Supervision of Elderly Care Service Institutions in Beijing”(Trial Implementation)》(Jing Min Fu Fa [2018〕412No.), hereinafter referred to as the "Measures".

捕获.PNG

The Measures explicitly support the elderly care membership system for the first time and set forth specific requirements:

I.Elderly care institutions operated using self-built or owned facilities may adopt a membership-based model.

II.Membership-Based PricingIn principle, it shall not exceedValuation of Collateral Available for Mortgage by the Operator.

III.Membership fees shall not be invested in high-risk industries.

Further Standardize the Supervision of Elderly Care Service Institutions

EnhanceRegulatory Fiscal FundsUsage Status. Fiscal subsidy funds received by elderly care service institutions from government departments shall be included within the scope of regulatory oversight, and such institutions shall proactively cooperate with and accept supervision and inspections conducted by audit, finance, and other relevant competent authorities.

Strengthen supervision over the operational status of institutions. The operational status of elderly care service institutions, changes in the use of service facilities, service quality, and the status of service personnel,Service Pricing and Feesand other circumstances.

Improve the Price and Fee Mechanism

Government-run elderly care institutions shall implement the Interim Measures for the Administration of Charges at Public Elderly Care Institutions in Beijing.Socially Operated Elderly Care Institutions Follow Market MechanismsSelf-determined pricing, fee items and standards are publicly disclosed to society,Issue a risk disclosure statement when collecting the deposit.

Membership Deposit

The Measures stipulate: Except for elderly care service institutions established using self-built or owned facilities, the implementation of a membership system is strictly prohibited. In principle, the fee amount collected under the membership system shall not exceed the estimated value of the operator’s collateralizable assets. Membership fees shall not be invested in high-risk industries.

For more details, please refer to the original official policy:

Measures for the Supervision of Elderly Care Service Institutions in Beijing(Trial Implementation)