Core Viewpoint - The introduction of a notarized prepayment supervision model for elderly care services in Shanghai's Putuo District aims to enhance the regulation of prepayment practices in the rapidly growing elderly care industry, addressing potential risks associated with prepayment schemes [1][2][3]. Group 1: Regulatory Developments - The Shanghai Putuo District Civil Affairs Bureau and the Putuo Notary Office have implemented a notarized prepayment supervision model, with 54 operating elderly care institutions signing agreements to transfer prepaid deposits into a notarized account [1]. - The Ministry of Civil Affairs and six other departments issued guidelines to regulate prepayment practices in elderly care, limiting the maximum prepayment period to 12 months and the maximum deposit to 12 times the monthly bed fee for each elderly individual [2]. - Local governments are encouraged to develop specific regulations based on the guidelines, with some areas reducing the prepayment period to 3 to 6 months to tighten oversight [2][3]. Group 2: Risk Mitigation Strategies - The notarized account model ensures that funds are independent of the institution's assets, protecting them from being frozen or misappropriated in case of bankruptcy or legal disputes [3]. - Withdrawals from the notarized account require mutual confirmation from both consumers and institutions, with notary verification, effectively preventing unauthorized charges [3]. - There is a push for the introduction of insurance mechanisms to further safeguard prepaid funds, alongside a call for enhanced enforcement measures to deter non-compliance and promote lawful operations among elderly care institutions [3]. Group 3: Broader Industry Context - The prepayment model is not unique to the elderly care sector; similar practices have been observed in real estate, education, and fitness industries, which have faced significant regulatory challenges due to instances of financial mismanagement [2]. - The focus on regulating prepayment practices in elderly care is part of a broader effort to improve the overall quality of life and security for the elderly population, emphasizing the need for comprehensive and ongoing regulatory oversight [3].