Breaking news: Injunction granted barring CMS from implementing rule banning arbitration agreements in skilled nursing facilities
On November 7, 2016, Judge Michael Mills, a judge in the U.S. District Court for the Northern District of Mississippi, granted a request by the American Health Care Association to bar the CMS from implementing a rule that bans arbitration agreements in skilled-nursing facilities.
The CMS rule, scheduled to become effective on November 28, 2016, bars any nursing home that receives federal funding from requiring its residents resolve disputes via arbitration instead of court.
The AHCA argued that the rule exceeds the CMS’ statutory authority and is wholly unnecessary to protect the health and safety of residents. Judge Mills agreed that the CMS exceeded its authority, noting in his 40-page opinion that, while there may truly be a problem with executing arbitration contracts during the nursing home admissions, only Congress, not the CMS, can do something about it.
For more information about these important new developments, you may contact Anne Nelson at Anne.Nelson@arandpartners.com or at 312-673-7810.