The CMS has issued a final rule to allow pre-dispute arbitration agreements under the condition that the residents’ receipt of care is not conditioned on signing them. Providers must inform residents or their representatives that they do not have to sign the agreement. The purpose of the rule is to:
The CMS proposal supports patients and their caregivers by removing the ban on binding arbitration agreements while requiring nursing homes to ensure residents have the ability to choose the method of dispute resolution they want. CMS is allowing binding arbitration agreements, but will prohibit nursing homes from requiring residents to sign binding arbitration agreements as a condition for receiving care, and will require nursing homes to inform residents or their representatives that they are not required to sign a binding arbitration agreement. Finally, CMS is prohibiting nursing home arbitration agreements from including language preventing residents or anyone else from communication with federal, state, or local officials.
Moreover, the agency has delayed implementation of “parts of phase three of the Requirements of Participation one year until November 28, 2020.”
