The Centers for Medicare & Medicaid Services (CMS) recently proposed a rule forbidding nursing homes from “requiring residents to sign binding arbitration agreements,” and according to a recent article in Modern Healthcare, the rule is “long overdue.” While California currently requires nursing homes to use only voluntary arbitration agreements—something that the American Health Care Association has been seeking—even voluntary agreements can pose problems for nursing home residents in the event of an elder abuse claim.
Are Voluntary Agreements Always Voluntary?
To have a better understanding of why even voluntary arbitration agreements might not be so great, it’s important to recognize why nursing homes and other facilities use them in the first place. In short, they “help nursing homes avoid costly litigation.” In other words, if a patient (or her family) thinks about filing a nursing home neglect lawsuit, an arbitration agreement can prevent her from doing so. Instead, she’ll have to go through arbitration. And many arbitration agreements—even voluntary ones—appear amidst a lot of other paperwork that appears when a patient enters a nursing home.