Binding Arbitration Agreements

The Centers for Medicare and Medicaid Services (CMS) has issued a Survey and Certification letter (S&C 17-12) regarding the use of pre-dispute binding arbitration agreements.

One of the requirements of the new nursing home regulations implemented on Nov. 28, 2016 prohibits nursing homes receiving Medicare or Medicaid funds from entering into pre-dispute binding arbitration agreements with any resident or resident’s representative or requiring that a resident sign an arbitration agreement as a condition of admission to the nursing home.

The United States District Court for the Northern District of Mississippi, Oxford Division, issued an order preliminarily enjoining CMS from enforcing this requirement. At this time, CMS will not enforce 483.70(n)(1) until and unless the injunction is lifted. As such, surveyors must not survey facilities for compliance with this new provision until further notified.

Contact: Elliott Frost, efrost@leadingageny.org, 518-867-8832