Can a Nursing Home Kick You Out for Non-Payment?

Friday, August 21, 2026

Can a Nursing Home Kick You Out for Non-Payment?

Written by Malman Law, reviewed by Steve J. Malman.

Key Takeaways

• Federal law permits nursing home discharge only for specific reasons, including nonpayment, safety risks, or facility closure.
• A nursing home generally cannot evict a resident for non-payment while a Medicaid application or appeal remains pending.
• Federal law requires 30 days’ notice before discharge for certified facilities, while Illinois sets a shorter 21-day floor.
• Residents may request written confirmation of Medicaid status and appeal a discharge decision before it takes effect.
• Facilities must state the specific factual basis for a discharge notice issued during an active Medicaid review.

Every year, State Long-Term Care Ombudsman Programs receive thousands of complaints involving improper evictions and inadequate discharge planning. In fact, ombudsman programs have attempted to resolve over 14,000 cases related to unlawful nursing home removals across the country.

Families often ask, “Can a nursing home kick you out for non-payment?” While facilities do have limited grounds to remove a resident, they must follow a strict legal process to do so. When facilities ignore that process, they can cause serious consequences, including loss of care, family separation, and in some cases, homelessness. At Malman Law, our nursing home attorneys are committed to helping Illinois families understand their rights and protect their loved ones from facilities that put profit over people, ensuring no one faces this process alone.

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Common Reasons for Illegal Nursing Home Discharge

Not every discharge notice is legally valid. Nursing homes sometimes attempt to remove residents for reasons that fall outside federal and Illinois law. Knowing the most common unlawful grounds can help families recognize when their loved one’s rights are being violated.

End of Medicare Coverage

The end of your Medicare coverage is not a sufficient reason for involuntary nursing home discharge. By law, the nursing home should give a resident a reasonable amount of time to secure another source of payment, such as Medicaid or private pay.

In most cases, a nursing home resident who is not ready for discharge after Medicare ends applies for nursing home Medicaid, and a pending application carries its own protections against discharge.

Private Pay Resident No Longer Has the Funds

If private-pay residents have exhausted their funds, the nursing home should give them reasonable notice to find an alternative. In most cases, a senior applies for Medicaid if they no longer have the funds to pay for the services.

Nursing Home No Longer Accepts Medicaid

According to the Nursing Home Resident Protection Amendments of 1999, it is illegal to involuntarily transfer or discharge a patient when a nursing home withdraws from admitting Medicaid-funded residents.

While they can stop accepting new Medicaid-funded residents, they cannot discharge active residents.

No Bed Available After Hospitalization

The situation is commonly known as ‘hospital dumping.’ Once a resident is admitted to a nursing home, the administration can claim that there is no available bed at discharge. Upon hospitalization, Illinois law requires a nursing home to hold the resident’s bed for up to 10 days.

Assessing the Nursing Home Decision

If your loved one is kicked out of a nursing home illegally, it is recommended to seek legal advice immediately. A nursing home attorney can diligently investigate the case and take immediate steps to protect the rights of your loved ones.

Can a Nursing Home Evict You While a Medicaid Application Is Pending?

Families often assume an unresolved Medicaid case leaves a payment gap that the nursing home is entitled to act on, but this gap is usually temporary. Illinois Medicaid can pay retroactively for nursing facility care once a case is approved, covering the months it took to reach a decision.

As outlined in 42 CFR 483.15, non-payment may serve as grounds for discharge only when a resident has failed, after reasonable notice, to pay for a stay not covered by Medicare or Medicaid, or after a claim has been denied and the resident refuses to pay. An open Medicaid case fits neither scenario, since nothing has actually been denied and no refusal to pay has occurred. The same regulation requires a discharge notice to state the specific reason for the move and document this basis in the resident’s medical record, so a notice built solely on an unpaid balance during an active Medicaid case leaves that requirement thin.

Families facing this kind of notice have a few concrete options:

• Request a written status update from the caseworker to document the facility’s status
• Confirm the notice was copied to the Office of the State Long-Term Care Ombudsman, as required by law
• Ask the facility in writing to provide the specific documentation for the discharge

If a discharge moves forward despite an open Medicaid case, a nursing home abuse lawyer can review the notice for compliance with these documentation requirements and file an appeal on the family’s behalf if it falls short.

If you are looking for experienced lawyers near you, Malman Law is your best choice. Located in Chicago, Illinois, our team is ready to help you obtain the compensation you deserve.

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When Can a Nursing Home Legally Evict a Resident?

Federal regulations strictly limit when a nursing facility may force a resident to leave. The Nursing Home Reform Law permits discharge only under specific circumstances. According to the Illinois Long-Term Care Ombudsman’s guidance, lawful grounds include:

• The resident failed to pay after receiving reasonable notice and opportunity to resolve the balance
• The resident no longer requires nursing facility services
• The facility cannot meet the resident’s medical or personal care needs
• The resident’s continued presence threatens other residents’ safety
• The resident’s continued presence threatens other residents’ health
• The facility permanently closes

Financial disputes sometimes mask deeper issues, including retaliation after complaints or efforts to avoid higher care costs. In Illinois, improper discharge is often connected to broader patterns of nursing home abuse, especially when administrators pressure vulnerable residents or family members. Understanding when a nursing home can kick you out for non-payment helps families distinguish a lawful discharge from one based on a pretext.

Malman Law’s founder Attorney Steven Malman has over 30 years of experience handling personal injury, nursing home, medical malpractice, premises liability, construction and workers’ compensation cases.

STEVE J. MALMAN

Founding Attorney

Nursing Home Residents’ Rights During an Involuntary Discharge

Under the Illinois Nursing Home Care Act Section 3-402, Under the Illinois Nursing Home Care Act Section 3-402, a facility must provide written notice at least 21 days before an involuntary transfer or discharge, explaining the reason for removal, the proposed discharge location, and the resident’s appeal rights. Federal regulation 42 CFR Section 483.15 sets a longer 30-day notice standard for facilities certified under Medicare or Medicaid, and since nearly every Illinois nursing home falls under that certification, the 30-day period is the one that

Residents have the right to challenge a discharge through the Illinois Department of Public Health and, in many cases, may remain in the facility until a final decision is issued. Facilities must also develop a proper discharge plan that includes safe placement and medical coordination. Skipping that process raises the risk of hospitalization, medication errors, emotional trauma, and physical decline, and may support broader claims involving neglect, financial exploitation, or nursing home abuse under Illinois law.

Speak to a Nursing Home Attorney to Defend Your Rights

If you are still wondering if a nursing home can kick you out for non-payment after receiving a sudden discharge notice, you are not alone. Malman Law has spent decades protecting nursing home residents and families across Illinois from improper evictions and facilities that put profit over care.

We review discharge notices, verify Medicaid status, gather documentation, and file urgent appeals when needed. Call 1-888-625-6265 or contact us online for a free case evaluation.