American Health Care Association files lawsuit challenging CMS rule

Our firm previously sent a news update regarding the rule issued by CMS on September 28, 2016, banning pre-dispute arbitration agreements in nursing homes. Since then, the American Health Care Association filed a lawsuit challenging the legality of this rule. According to the lawsuit, pursuant to the Federal Arbitration Act, Congress is the only entity that can change arbitration agreements. In addition, the National Center for Assisted Living has expressed concern that states may follow the federal government’s lead and prohibit these agreements in assisted living facilities. For more information regarding this lawsuit, please contact Alexis Lumell at alexis.lumell@arandpartners.com or (312) 673-7816.