Nursing Home Arbitration Agreements: A Changing Landscape

Because arbitration proceedings often offer a less costly and more efficient alternative to the burdens of protracted courtroom litigation, arbitration agreements are increasingly common in the nursing home industry. However, the current legal landscape regarding arbitration clauses in nursing home admission agreements is an active and evolving area of the law, and providers should be aware of the latest developments.

The Uncertain Status Of The CMS Rule

Last year, the Centers for Medicare & Medicaid Services (CMS) issued a final rule which would have prohibited long-term care (LTC) facilities from requiring incoming patients to agree to mandatory arbitration for subsequent disputes. The rule was scheduled to take effect on November 28, 2016 as part of a broader reorganization and revision of the regulations governing LTC facilities. Compliance with the rule would have been a requirement for those facilities that wanted to continue participating in the Medicare and