Skilled Nursing Facility

CMS final arbitration rule now in effect

The CMS final arbitration rule debuted earlier this summer went into effect September 16.

The new rule redacts the 2016 ban on binding arbitration agreements put forth by the Obama administration. SNFs once more have the ability to use binding arbitration agreements, albeit with some conditions:

  • Agreements cannot be signed as a term of admission or continuance of care
  • Agreements must be written and explained in plain language that can be easily understood by the resident or their representative
  • The resident must acknowledge that they understand the agreement
  • The resident has 30 days to rescind the agreement after signing it

Several healthcare providers ignited a lawsuit against CMS to dispute this rule. Despite the lawsuit, the implementation of the rule has not been affected.