Final Rule to Prohibit Predispute Binding Arbitration Agreements in Long-Term Care

October 7, 2016 | Aging Services Risk Management


​Prohibition of predispute binding arbitration agreements in long-term care facilities is among the revisions in a final rule that "will make major changes to improve the care and safety" of long-term care residents issued by the Centers for Medicare and Medicaid Services (CMS) on October 4, 2016, according to a September 28, 2016, CMS press release. Under the rule, the first major rewrite to conditions of participation for long-term care facilities since 1991, nursing homes that receive federal funding may not enter into agreements for binding arbitration with residents or their representatives before a dispute arises between the parties. However, arbitration may still be used voluntarily at the time a dispute arises. The rule guarantees the right of residents and their legal representatives to seek legal redress through the court system, rather than in arbitration.

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