Beware of Nursing Home Arbitration Agreements

Deciding on a nursing home facility can be a stressful event. Many patients enter a nursing home following an illness, and may be under duress or under medication at the time of their admission. Most patients fail to scrutinize the lengthy documents they must sign prior to admission, and inadvertently sign away their right to a trial before a jury if something goes wrong. Most nursing homes in California have an arbitration agreement as an attachment to their contracts with a patient. By law, the nursing home is not allowed to include an arbitration agreement in the admission contract or require that a patient sign such an agreement as a condition to entry. However, most patients sign the arbitration attachment without realizing the potential repercussions of their action.

Arbitration is an alternative method of resolving a dispute without going to court. Arbitrators consider federal and state law when resolving a dispute. Advocates of arbitration say it provides a faster resolution and is less expensive for both the nursing home and the resident. Critics of arbitration note that arbitrators are less likely to rule for the plaintiff, and if they do, the awards are generally smaller. Critics also note that since arbitration is confidential, it leads to less accountability on the part of the nursing home.

The federal Fairness in Nursing Home Arbitration Act introduced earlier this year would make arbitration agreements for nursing home patients unenforceable. Consumer advocates including the AARP and the Alzheimer’s Association support the Act. The Act doesn’t preclude binding arbitration as an option in the event of a dispute, but instead requires the decision to be made by both parties after a dispute occurs.

If you or a loved one must enter a nursing home, read all of the admission forms and attachments carefully. If you don’t understand something, consult your attorney prior to signing. Don’t let the facility pressure you into signing something you don’t fully understand. In California, you cannot be forced into signing an arbitration agreement as a condition for admission to a nursing home. You could be signing away your ability to hold the nursing home accountable for improper care.

Thanks for reading my blog. I’ll post an update on the Fairness in Nursing Home Arbitration Act at a later date. If you have a question or need assistance with a possible claim against a nursing home or assisted care facility, contact me for help and immediate assistance.