Enforcement of Arbitration Ban Temporarily Suspended as Proceedings Continue

November 18, 2016 | Aging Services Risk, Quality, & Safety Guidance

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​A federal court has issued a preliminary injunction to prevent the Centers for Medicare and Medicaid Services' (CMS) prohibition of predispute arbitration agreements from going into effect. The November 7, 2016, order was granted pursuant to a lawsuit brought by the American Health Care Association (AHCA), along with other plaintiffs, challenging CMS's prohibition (see the October 21, 2016, Issues in Continuing Care Risk Management). The U.S. District Court for the northern district of Mississippi wrote that it was "sympathetic to the issues presented" by CMS, citing questions of many residents' mental competency to agree to arbitration, issues of agency in the event that a family member signs the agreement, delays caused by litigation over whether arbitration must be compelled in the event that residents do sue, and the stress that residents and family members are under during the admissions process.

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