On July 18, 2019, CMS published a rule that
finalized certain requirements for long-term care ("LTC")
facilities using pre-dispute arbitration agreements with residents.
The final rule is scheduled to go into effect on September 16,
2019.
Recent history on LTC arbitration agreements
As explained below, CMS's position on arbitration agreements
between LTC facilities and residents has evolved over the past few
years.
- In October of 2016, CMS published a
final rule that completely prohibited LTC pre-dispute binding
arbitration agreements.
- Then, in December of 2016, after the
U.S. District Court for the Northern District of Mississippi
enjoined enforcement of this prohibition, CMS issued a nationwide
instruction to State Survey Agency Directors that directed them not
to enforce the 2016 final rule.
