For how long does a facility retain resident contracts?

The retention period for resident contracts is typically established to ensure that facilities comply with legal, regulatory, and operational requirements. Retaining contracts for five years strikes a balance between providing adequate time for any potential legal actions related to those contracts to arise and the practicality of managing records efficiently.

The five-year retention period allows facilities to adequately respond to inquiries or disputes that may occur post-termination of the contract, as many legal statutes of limitations for contract disputes fall within this timeframe. Furthermore, this duration aligns with best practices in record management within the healthcare and residential facility sectors, promoting compliance with state and federal regulations that may dictate how long such documents should be held.

Choosing a retention period shorter than five years might leave the facility vulnerable to disputes or audits that could occur after the contracts have been destroyed. On the other hand, a longer retention period may unnecessarily increase storage costs and complicate record-keeping processes. Thus, keeping resident contracts for five years is seen as a prudent and compliant approach.