This Act is enacted to provide for the establishment, organization, and management of institutional long-term care juridical entities.

The term "competent authority/authorities," as used in this Act, refers to the Ministry of Health and Welfare at the national level, special municipalities subject to direct administration of the Executive Yuan , and counties/municipalities at the local level.

The term " institutional long-term care juridical entities," as used in this Act, shall refer to long-term care foundations and long-term care corporations established in accordance with this Act that offer long-term care services.

A institutional long-term care juridical entities shall be governed and supervised by the special municipality/county/municipality that exercises jurisdiction over the main business office thereof. But when any long-term care institution established by the institutional long-term care juridical entities is situated in two or more localities, the said institution shall be governed and supervised by the central competent authority.