Poland’s Office of Competition and Consumer Protection (UOKiK) reviewed agreements used by private nursing homes in Poland. Nationwide in scope, the control procedures covered 40% of facilities and revealed that upwards of 90% of them were using abusive clauses.

According to a report done by research firm PMR The private healthcare market in Poland 2015. Growth projections 2015-2020, there were some 1.5 mln people over the age of 75 in Poland during the years 2007-2011. That number is set to grow to 4 mln by 2035. According to PMR’s estimates, approximately 7% of them will rely on nursing homes. As Poland’s Ministry of Family, Labour and Social Policy has indicated, there are around 80,000 people currently in nursing homes. The roughly 200 private homes operating in the country have 14,000 places.

Given the growing importance of private nursing homes, UOKiK undertook to review standard agreements used by private care facilities. Its research began in 2014, and covered all of Poland’s voivodships and more than 180 contracts used by 72 different enterprises. More than 90 percent of them used contract provisions the Authority objected to. The most common concerned provisions enabling the companies to terminate an agreement with immediate effect, retaining payment for services not delivered and unilateral changes to the conditions of residents’ stays in the homes.

As a result of the control, UOKiK initiated 15 preliminary proceedings and issued nearly 80 calls to change the standard agreements. In the majority of cases, the provisions UOKiK challenged were eliminated. UOKiK has begun monitoring the entire private nursing home market and is planning further controls.

Below are the most important irregularities that led to UOKiK’s objections.

1.   Reserving the right to terminate a contract with immediate effect

83 percent (a total of 60) of the controlled enterprises provided for immediate contract termination if payment for care was delayed. However, considering the rights of people using nursing facilities, contract termination for arrears should be preceded by a request for payment, the granting of additional time to pay and a warning about the consequences of the failure to pay.

In some of the cases the Authority reviewed, deterioration of a patient’s physical and mental health was treated as sufficient reason for immediate contract termination. Such provisions are contrary to established custom, particularly when they require the individual receiving care to almost immediately check out of the facility.

2.   Not returning money for services not performed

62 percent (45) of the enterprises reserved the right to retain payments collected in advance, when a service was not performed in full. One provision read: The home does not provide for the return of money paid for an individual’s stay in case of resignation with a failure to observe the contract termination period. This applies likewise to misfortunes of fate regardless of their duration, eg. death.

Note that a care provider may not refuse to return money to a consumer or his or her heirs for services not rendered. Only the amount reflecting the value of services actually provided may be kept.

3.   Unilateral changes made to the price of service or the contents of an agreement without the right to terminate it

51 percent (37) of the nursing homes provided for the possibility of increasing their charges. Clauses such as the following were found: The charges ( ... ) can be changed, though not more than twice per year. The new charges will take effect from the next month following written notification of this fact to the Principal and does not constitute an amendment of the agreement. UOKiK also challenged 8 percent (6) of the homes for using provisions enabling them to unilaterally change the conditions of living in a facility.

However, under the law, when changes are made to a contract, the consumer has the right to respond to and/or reject them and expect the enterprise to enact his or her expectations based on earlier established conditions.

4.   Disclaiming liability for personal injury or personal belongings left in the nursing home

The home does not offer individual care and therefore is not responsible for falls or for injuries caused as a result of a resident’s self-willed behaviour - this and similar provisions were used by 20 percent (14) of the nursing homes. However, consumers have the right to seek compensation for damages suffered. Because it is the courts that ultimately decide which side is at fault when fault is not clear, nursing homes may not exclude themselves from liability for personal injury.

It is also incumbent upon the homes to enable the safety of personal belongings. Provisions to the effect that a facility is not responsible for money, jewelry, or family heirlooms are therefore prohibited. 37 percent (27) of the homes reviewed applied such clauses.

5.   Exorbitant fees or fines

When a consumer fails to follow contract provisions, the enterprise may legally impose additional charges — but not to such an extent that it profits excessively. 17 percent, or 12 of the nursing homes checked, were found to be charging such fees.

Additional information for the media:

Press Office, UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone.: +48 22 827 28 92, +48 22 55 60 314, +48 22 55 60 430
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