Before sending an elder to a nursing home, check that it is registered with the civil affairs bureau and sign a written agreement; the deposit is at most 12 months of bed fees and must go into a dedicated bank account

A legitimate nursing home has to register with the civil affairs bureau and sign a written agreement with you. The deposit is at most 12 months of bed fees, and service fees may be collected at most 12 months ahead. The deposit and membership fees must go into a dedicated account the home holds at a bank. If they go over the cap, ask you to transfer to a personal account, or give a receipt and no invoice, do not pay yet.

Cost

No cost. Before signing, call the local county civil affairs bureau (民政), or ask the nursing home for its registration receipt. Then compare the agreement, the fee sheet, and the account that receives the money. Half a day is enough. The hard part is that when beds are scarce, the family feels awkward picking at the contract.

Benefit

The Ministry of Civil Affairs (民政部) measures for the administration of elder-care institutions say that within 10 working days after a home takes an elder in, it must register with the civil affairs bureau. If the papers are complete, the bureau issues a registration receipt. The home must sign a service agreement with the elder or their agent, stating the care level, the fee schedule, refunds, and liability for breach. If they do not sign an agreement, the bureau orders correction and issues a warning; in a serious case the fine is up to 30000 yuan. A 2024 document from 7 departments, including the Ministry of Civil Affairs, set caps on prepaid fees. Elder-care service fees may be collected at most 12 months ahead. The deposit is at most 12 times that elder's monthly bed fee. The deposit may be used only for refunds, advancing the cost of sudden medical care, offsetting unpaid fees, and compensation. Public homes, and homes that were built with public funds and are privately run, may not charge a membership fee. A home that is not yet built, or that cannot yet take elders in, may not charge a membership fee either. The deposit and membership fees must all be placed in a dedicated deposit account under third-party custody at a bank. They may not be collected into a personal account. When money is received, an invoice must be issued. A receipt may not stand in for an invoice. If the elder cancels before moving in, the home must return the prepaid money promptly. If the elder has moved in, deduct what has already been used and, in principle, refund the rest in one payment through the original channel. This document took effect on 2024-10-01. Provinces may set stricter rules. The 2025 custody guidelines require that after the home applies for a refund, the custodian bank pay it the same day, or the next day at the latest, in one payment back through the original channel.

Notes

A province may set a shorter cap on the deposit and a shorter period for prepaying service fees. Check that province's rules before signing. The agreement can follow the model elder-care service contract issued by that province's civil affairs bureau and market supervision administration. The model-contract library of the State Administration for Market Regulation (市场监管总局) has them. Registration is done after the home starts taking elders in. A home that just opened may still be filing. Ask when it will be registered. If a refund cannot be agreed, the document's path is negotiation, mediation, a complaint, arbitration, or a lawsuit. A complaint goes to the civil affairs bureau that supervises the home, and it is free. If you go to court, a first-instance ordinary procedure starts at 6 months, and you pay the lawyer yourself. If they promised, when taking the money, to return principal with interest or to pay a return, that is no longer ordinary prepayment. See item 5 (investing in elder care). The people who benefit are mainly your parents and grandparents. The prepaid-fee caps are written from the documents as of 2026-10.

Sources · 4

1. 民政部 (2020). 养老机构管理办法（民政部令第 66 号，第十、十二、十六、四十六条）. gov.cn/zhengce/zhengceku/2020-09/19/content_5…
2. 民政部、国家发展改革委、公安部等七部门 (2024). 关于加强养老机构预收费监管的指导意见（民发〔2024〕19 号，第四、五、六、八、九条）. gov.cn/zhengce/zhengceku/202405/content_69503…
3. 民政部办公厅、金融监管总局办公厅 (2025). 关于印发《养老机构预收费存管工作指引》的通知（民办发〔2025〕9 号）. gov.cn/zhengce/zhengceku/202511/content_70490…
4. 国家市场监督管理总局. 合同示范文本库（各省养老机构服务合同示范文本，如甘肃省 2024 版）. htsfwb.samr.gov.cn/View?id=8377c6f9-b7f8-4cb4…