San Francisco, September 29, 2016 – An outright ban on the use of pre-dispute binding arbitration agreements highlights the most significant re-write of federal nursing home regulations in 25 years. Yesterday, the Centers for Medicare and Medicaid Services (CMS) posted its final rule for revising the requirements that nursing homes must meet to receive Medicare and Medicaid funding. The rule is 713 pages long and affects virtually every aspect of the lives of nursing home residents but one sentence on page 689 will likely have the greatest impact: A facility must not enter into a pre-dispute agreement for binding arbitration with any resident or resident’s representative Calling pre-dispute arbitration agreements “unconscionable” by their very nature, CMS has protected nursing home residents from signing away their rights to file lawsuits when they are subjected to abuse or neglect or have their rights violated. Arbitration agreements are used by nearly all nursing homes to ensure residents have limited options when they are harmed or need justice.
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