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U.S. to Bar Arbitration Clauses in Nursing Home Contracts | U.S. to Bar Arbitration Clauses in Nursing Home Contracts |
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The federal agency that controls billions of dollars in Medicare and Medicaid funding has moved to prevent nursing homes from forcing claims of elder abuse, sexual harassment and even wrongful death into the private system of justice known as arbitration. | |
The agency, the Department of Health and Human Services, on Wednesday issued a rule that bars any nursing home or assisted-living facility that receives federal funding from inserting an arbitration clause into its contracts. | The agency, the Department of Health and Human Services, on Wednesday issued a rule that bars any nursing home or assisted-living facility that receives federal funding from inserting an arbitration clause into its contracts. |
The rule, which would affect 1.5 million nursing home residents, promises to deliver major new protections. | The rule, which would affect 1.5 million nursing home residents, promises to deliver major new protections. |
Clauses embedded in the fine print of nursing home admissions contracts have pushed disputes about safety and the quality of care out of public view and into arbitration. The system has helped the nursing home industry reduce its legal costs, but it has stymied the families of nursing home residents from getting justice, even in the case of murder. | Clauses embedded in the fine print of nursing home admissions contracts have pushed disputes about safety and the quality of care out of public view and into arbitration. The system has helped the nursing home industry reduce its legal costs, but it has stymied the families of nursing home residents from getting justice, even in the case of murder. |
A case involving a 100-year-old woman who was found murdered in a nursing home, strangled by her roommate, was initially blocked from court. So was a case brought by the family of a 94-year-old woman who died at a nursing home in Murrysville, Pa., from a head wound that had been left to fester. The cases were the subject of a front-page article in The New York Times last November. | A case involving a 100-year-old woman who was found murdered in a nursing home, strangled by her roommate, was initially blocked from court. So was a case brought by the family of a 94-year-old woman who died at a nursing home in Murrysville, Pa., from a head wound that had been left to fester. The cases were the subject of a front-page article in The New York Times last November. |
“The sad reality is that today too many Americans must choose between forfeiting their legal rights and getting adequate medical care,” Senator Patrick Leahy, a Vermont Democrat, said in a statement on Wednesday. | “The sad reality is that today too many Americans must choose between forfeiting their legal rights and getting adequate medical care,” Senator Patrick Leahy, a Vermont Democrat, said in a statement on Wednesday. |
The new rule comes after officials in 16 states and the District of Columbia urged the government to cut off funding to nursing homes that use the clauses, arguing that arbitration kept patterns of wrongdoing hidden from prospective residents and their families. | The new rule comes after officials in 16 states and the District of Columbia urged the government to cut off funding to nursing homes that use the clauses, arguing that arbitration kept patterns of wrongdoing hidden from prospective residents and their families. |
With its decision, the federal agency has restored a fundamental right of millions of patients across the country: their day in court. | With its decision, the federal agency has restored a fundamental right of millions of patients across the country: their day in court. |