On Wednesday, September 28th the Centers for Medicare and Medicaid services issued a rule to ban pre-dispute binding arbitration clauses in contracts by long term care facilities that receive funding from Medicare and Medicaid. The rule is scheduled to take effect in November.
Unfortunately the rule would not affect previously signed nursing home contracts with arbitration clauses.
What is a forced arbitration clause?
Forced arbitration clauses found within nursing home contacts prevent nursing home residents/their families from taking legal action against the nursing home in a court of law. Rather, claims are settled by third parties selected by the nursing home or facility.
“Clauses embedded in the fine print of nursing home admissions contracts have pushed disputes about safety and the quality of care out of public view.
The system has helped the nursing home industry reduce its legal costs, but it has stymied the families of nursing home residents from getting justice, even in the case of murder.” – New York Times
For more information about forced arbitration, of if you believe your elderly loved one has been a victim or nursing home abuse or neglect, click here.