Money, conflicts and the law
It costs you nothing, and you should still ask why
Every senior placement service you will speak to this week is free to your family. That is not generosity. The care home pays, which means the person advising you is paid by the industry they are advising you about. Here is exactly how that works, what it is reasonable to worry about, and what California law actually requires of us.
The arrangement, in full
When a family we have helped moves into a care home, that home pays us a referral fee. It is usually worked out from the home's monthly rate. Your family is not invoiced, and your mother's rate should not go up because we were involved — ask the home to confirm that to you directly, not through us.
Nothing is owed if nobody moves in. If we spend three weeks on your situation and you decide to keep her at home with carers instead, that is a good outcome and we are paid nothing for it. That happens regularly and it is a normal part of the work.
The honest problem with it
The obvious risk is that an agency steers families towards whoever pays most, or towards the homes with empty beds rather than the right ones. That risk is real and pretending otherwise would be insulting.
The thing that actually protects you is not our good intentions. It is that you can check our work. Everything we would ever recommend is on the public state register, with a licence number, and you can look up any of it yourself in about two minutes. An agency that will not tell you a home's licence number is the one to walk away from.
Ask any agency this
Six questions, including ones we would rather you did not ask
If an agency flinches at any of these, that is your answer. Ask us the same ones.
Do you get paid by every home you are showing me?
If one on your shortlist does not pay them, that is a good sign. If every single one does, ask what is being left out.
Will you tell me about a home that does not pay you?
Sometimes the right answer for a family is a home with no agreement with us. We will say so, and we will tell you we earn nothing from it.
What is this home's licence number?
It should come back immediately. It is public, it is on the state register, and there is no reason to withhold it.
Have you personally been inside this building?
National referral sites work from a database and a call centre. The question sorts an advisor from a lead broker in one move.
Who else are you giving my phone number to?
Some services sell a single enquiry to several facilities, which is why families get called for a fortnight. We do not do that, and you should ask anyone who does.
What happens if the placement goes wrong in a month?
A referral fee is usually earned on move-in. Ask what the agency does in week three when it is not working, because that is when you will need them.
What California law requires of us
There is no licence for this job, which is why the rules matter
California does not licence senior placement agencies. A bill that would have required one — SB 875 — failed in 2024 after its hearing was cancelled. Anybody can set up as a placement advisor tomorrow, and that is worth knowing before you hand over your mother's medical history.
What does exist is Health and Safety Code section 1569.47, which applies to every placement agency in the state, licensed or not. Under it:
- It is a misdemeanor for a placement agency to place, refer or recommend placement of a person into an unlicensed facility providing care and supervision.
- It is a misdemeanor to place somebody into a licensed home that cannot legally care for their health condition, or who needs inpatient care in a health facility.
- An agency that knows or reasonably suspects an unlicensed facility is operating must report its name and address to the Department of Social Services.
- An agency must notify the licensing agency of known or suspected incidents that would jeopardise residents' health or safety — including physical abuse, unsafe or unclean conditions, and insufficient or incompetent staff.
That last duty is the one families should hold every agency to. If we see something in a building, we are required to report it, and we do.
This is a plain summary of the statute as it stands in October 2026, not legal advice. The text is public at Health and Safety Code section 1569.47.
Common questions
The money, answered directly
- Do senior placement services cost the family money?
- Almost never, including here. The service is free to the family and the care home pays a referral fee when somebody moves in. You should still ask any agency to confirm that in writing before you share anything about your parent.
- How do senior placement agencies get paid?
- A care home pays the agency a fee when a resident the agency referred moves in. It is typically calculated from the home's monthly rate. The family is not charged and the resident's rate is not supposed to increase because an agency was involved — ask the home to confirm that directly.
- Does a placement agency need a licence in California?
- No. There is currently no state licence for a senior placement or referral agency in California. A bill that would have created one, SB 875, failed in 2024. That makes it more important, not less, to ask an agency the questions on this page.
- Is it illegal for a placement agency to send my parent to an unlicensed home?
- Yes. Under Health and Safety Code section 1569.47 it is a misdemeanor for a placement agency to place, refer or recommend placement of a person into an unlicensed facility providing care and supervision. It is also a misdemeanor to place somebody into a licensed home that cannot legally care for their condition.
Ask us the six questions
Genuinely — call and ask them. You will learn more about whether to trust us from how we answer than from anything written on this page.
Tell us who you are looking after
Four short questions. Nothing you answer is shared with a facility until you say so.
Prefer to talk now? (714) 975-9652, open every day until 6pm.