CMS Issues New Rule Barring LTC Facilities From Signing “Pre-Dispute” Arbitration Agreements With Residents

    View Author October 2016

    On September 28, 2016, CMS released its final rule updating the requirements that Long-Term Care (LTC) facilities must meet to participate in Medicare and Medicaid. This final rule introduces a number of provisions aimed at reducing unnecessary hospital admissions, improving quality of care and strengthening protections for LTC residents.

    One of the new requirements completely bars LTC facilities from entering into “pre-dispute” binding arbitration agreements with any facility resident or such resident’s representative, including at the time of admission (the Arbitration Bar). The Arbitration Bar, which is contained in a new regulation (42 C.F.R. § 483.70(n)), came as a surprise to providers and other interested parties because CMS had proposed only certain restrictions on pre-dispute arbitration agreements rather than an outright ban.

    For more details, including what the Arbitration Bar does when it goes into effect on November 28, 2016, please refer to this publication.