Many referral agencies promote themselves as a free service to seniors.  But, unless they are truly a non-profit organization, there is no free lunch.  If you understand how referral agencies work, then you can better protect yourself.  Simply, a referral agent is paid a commission from the facility owner that ultimately admits your family member to their facility.  So although the senior is not charged a fee up front, the facility owner does pay a fee to have you move into their facility.  So what is wrong with that?  Consider that the referral agency refers only to facilities that have signed referral fee contracts with them, so you are not receiving a complete list of options meeting your needs.  Consider that the agent might refer you to a community that charges a higher rate than others, which helps maximize their commission and the facility is happy to receive a higher rate.  Consider that the commission paid by the facility to the referral agent could be negotiated and possibly reduced so that you can use that difference to negotiate a concession by the facility for your loved one.  For more information on referral fees or to receive a free opinion memo, please contact Stuart Furman, Esq. at 877-820-3335 or via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .