On May 15, the U.S. Supreme Court upheld a Kentucky nursing
home's use of mandatory arbitration agreements in nursing home
admissions. In a 7-1 ruling, the justices found that the lower
court violated the Federal Arbitration Act when it declined to give
effect to the arbitration agreements signed by family members of
residents in a nursing home.
In view of the Trump administration's stated agenda to reduce
regulation, this decision should provide the final blow to the rule
published on September 28, 2016 by the Centers for Medicare &
Medicaid Services (discussed
here) which included a prohibition on requiring residents to
accept pre-dispute binding arbitration as a condition of admission
to a skilled nursing facility. As reported
here, the rule has been actively opposed by the nursing home
industry, including a lawsuit to challenge the enforcement of the
rule.
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