The Centers for Medicare and Medicaid Services (CMS), an agency of the Health and Human Services Department, has issued a rule that will prevent nursing homes receiving federal funding from requiring resident’s to sign admission agreements with arbitration clauses. An arbitration clause is a clause in a contract requiring parties to resolve issues through the arbitration process, therefore depriving the resident of his/her right to bring a lawsuit against the nursing home. These clauses have forced claims of sexual harassment, elder abuse and even instances of wrongful death from being handled in an open court.
The fine print of arbitration clauses have also prevented disputes on resident safety and quality of care from being publicly known. This rule will provide new protections to 1.5 million nursing home residents. The agency’s new rule is the most significant overhaul of rules regarding federal funding for long term care facilities, restoring millions of Americans their right to pursue action in an open court. The rule applies to pre-dispute matters, allowing the parties to a dispute the opportunity to seek arbitration after a dispute arises. Continue reading