CMS Proposes to Reverse Restrictions in Arbitration in Nursing Homes

Todd Bartimole

CMS (Centers for Medicare & Medicaid Services) has proposed new rules which would reverse Obama administration rules banning pre-dispute binding arbitration provisions for long-term care facility (nursing home) contracts. The new rule would allow binding arbitration provisions as a condition of admission with minimal requirements.

The provisions in nursing home contracts were prohibited as a condition of admission due to earlier findings by CMS. Being a “condition of admission” means essentially that a nursing home could refuse admission to someone who refuses to sign away their rights to a court deciding not only contractual issues, but potentially issues of personal injury or wrongful death.

Currently, a prospective nursing home applicant can opt out of any binding arbitration provisions in a contract. This rule appears to intend to reverse that right.

Review Long Term Care & Nursing Home Contracts

If you have any questions about nursing home contractual issues, please contact us. Many nursing home contracts require a child commit to being personally liable, which can create tens of thousands of dollars of personal liability. If you are entering into a nursing home contract for a parent or spouse, we are happy to review it for you before you sign.

Contact Todd W. Bartimole for more information regarding nursing home contracts, the proposed CMS rules or any other concerns in his practice areas of Elder Law, Estate Planning and Disability and Special Needs Planning.

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