Nursing Home Organizations Push Back Against Arbitration Ban

There’s some pushback regarding a new CMS regulation that would ban arbitration clauses from the admission contracts at nursing homes. What is being hailed as a victory for patients, their families, and advocates may not even go into effect.

The American Health Care Association filed a lawsuit on Monday fighting back against the ban on arbitration clauses recently proposed by the Centers for Medicare & Medicaid Services.

The lawsuit, which was entered into the U.S. District Court for the Northern District of Mississippi alleges that the agency overstepped its authority.

The complaint went on to state, “Moreover, even if such a ban were legally permissible, the Arbitration Rule is arbitrary and capricious — and thus unlawful — because it will needlessly deprive both SNFs/NFs and their residents of the benefits of arbitration and result in the siphoning of resources toward litigation costs and away from resident care.”

The complaint was filed jointly by the AHCA, the Mississippi Health Care Association, and three different Mississippi healthcare facilities. All of these entities regularly enter into pre-dispute arbitration agreements with residents prior to admission.

The groups are requesting that the court for declaratory and injunctive relief, and that the court block enforcement of the ban before it can go into effect. The ban is set to become active on November 28th.

One organization that represents attorneys lambasted AHCA’s complaints, saying that arbitration agreements were used to “cover up abuse and neglect” and that healthcare providers are now distraught that regulators are “stepping in.”

If you or a loved one have been the victim of abuse or neglect while residing in a nursing home, you may be entitled to compensation. Contact the law offices of Schenk Law. Our attorneys specialize in these claims. Contact us today.