Long Term Care & Senior Living Blog
June 13, 2017
CMS: Change in Direction on Arbitration Ban
On September 28, 2016, CMS created the “Arbitration Rule”, banning arbitration agreements in nursing home admission agreements. By creating this Rule, CMS took the position that, due to the inequality of bargaining power between potential nursing home residents and long term care facilities, those facilities could no longer require, or even offer, binding arbitration as part of the admission process or at any point prior to a dispute arising.