On Sept. 28, the Department of Health and Human Services, Center for Medicare and Medicaid (CMS) issued a final rule reforming requirements for long-term care facilities. The final rule, published Oct. 4, states that long-term care facilities who receive federal funding are precluded from entering into mandatory pre-dispute resolution agreements with patients, such as arbitration clauses.
Over the past decade, nursing homes and long-term care facilities have trended toward including mandatory arbitration clauses in their admission paperwork for patients. Various courts across the country have concluded that state law cannot preclude nursing homes from engaging in this practice under the doctrine of federal pre-emption and the Federal Arbitration Act (FAA).
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