The Centers for Medicare and Medicaid Services recently announced a new
rule that preserves the rights of patients and families to sue long-term care
facilities in court for claims such as elder abuse, sexual harassment and
wrongful death. The rule bans any long-term care facility, including nursing
homes, that receives federal funding from requiring its residents to sign
forced arbitration contracts to resolve disputes through arbitration instead of
the court system. The parties may enter into an arbitration agreement after a
dispute arises, but not before. The rule promises to help deliver safety
measures for residents. Requiring patients and families to use the private arbitration
system for claims reduces legal costs for facilities, but may block patients
and families from getting the justice that they seek. The Administrator for the
Centers for Medicare and Medicaid Services announced that the rules “are a
major step forward to improve the care and safety of the nearly 1.5 million
residents in the more than 15,000 long-term care facilities that participate in
the Medicare and Medicaid programs.” The rule is scheduled to go into effect November
28, 2016 for facilities that participate in the Medicare and Medicaid programs.
Written by Heather W. Winter, Esquire
