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Below is a summary of a legal issue that may have implications for many of our readers. The reported case is contrary to a Southern District decision within the last 2 years.  Look for this to be a growing issue as "CCRCs" (Continuing Care Retirement Communities) become more popular.  CCRCs are facilities with multiple levels of care, where residents can transition to higher levels of care based on need and the underlying contractual agreement with the facility.   In some CCRCs there is a significant financial incentive for the facility to move the resident from independent living apartments to assisted living wards, as the independent units often can be re-sold for substantial amounts by the facilities, and are the true "selling point" for the marketing departments ability to attract new membership.   However, the facilities potential liability if they fail to provide needed care is also noted in the reported case, and was dispositive in this matter.  Look for more decisions in the future parsing these competing arguments. -Phil Lindsley

A federal court has ruled that a continuing care retirement community (CCRC) can force one of its residents to move from her private apartment to an assisted living unit.

Sally Herriot, 90, is a resident of Channing House, a CCRC in Palo Alto, California, that provides three levels of care -- independent living, assisted living and skilled nursing. Since moving to the facility with her now-deceased husband in 1991, Ms. Herriot has lived in a spacious independent living apartment. After Ms. Herriot returned from a hospital stay in 2006, Channing House determined that it was necessary to transfer her from her apartment to a much smaller, hospital-like assisted-living unit where she could be served by a trained nursing staff. Ms. Herriot, her family and her physician objected to the transfer, arguing that she is able to remain in her apartment with the help of round-the-clock private aides she had hired. Channing House rejected this arrangement.