Nursing Home Arbitration Provisions

At admission, many nursing homes are requiring patients or their family members to sign admission agreements that include a provision for binding aribtration for all disputes arising between the resident and the nursing home.  Many people do not read these admission agreements carefully and are unaware that by signing the agreement that they may be losing their right to bring a lawsuit through the court system.  If a lawsuit is brought because the resident was injured due the negligence of  a nursing home employee, the nursing home will often ask that the case be dismissed because the resident must pursue arbitration instead.

These provisions are usually unfair because the residents are unaware that they are giving up their rights to a jury trial by signing the agreement.  It is also more difficult to get information from the nursing home prior to an arbitration hearing.  This is because records cannot be obtained through a subpoena.

Legislation was introduced in Congress in 2008 that would prohibit these clauses in nursing home admission agreements, but was not passed into law.  A new version of the law will probably be introduced this year.  Until then, the residents and their family members will have to rely upon attorneys in this field to have the courts strike down this provision on a case by case basis. 

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