Despite the Supreme Court’s decision in 2012, the topic still isn’t well-known, the article explained. But nursing homes have started adding the clause into patient contracts, and the majority of families and residents are signing them. With the rise in litigation, the article says that it’s at least a tool that nursing home owners can use to give them some protection from costly verdicts.

Patients will still have protection, as cases can still be challenged in courts, and arbitration agreements can be struck if they aren’t properly constructed.

The arbitrator is like a judge who sees both sides and may say, “He’s kinda right and she’s kinda right, so I’m going to make everyone happy and split the baby.” Arbitration tends to be fairer.

Just like any contract, the article says that a court can review the arbitration agreement to make sure it is legal. A contract can’t take advantage of the resident or his or her family, and a nursing home can’t deny admission based on whether the arbitration agreement in the contract is signed.

The article urges patients and family members to be aware of this arbitration agreement, which will arbitrate all potential claims and waive litigation.

An Elder Law attorney can give you more information about these arbitration clauses and how they are handled in your state.

Make an appointment to see an experienced Elder Law attorney before signing any nursing home contract.

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.
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