For decades, arbitration has been the favored way for Maryland nursing homes to resolves dispute made by residents and residents’ families. In part, this is because arbitration is confidential, meaning that the facility does not need to worry about the news of a resident’s injuries or suffering getting out. However, there is also evidence suggesting that nursing homes get better results in cases that go to arbitration. Arbitration is also less expensive, which primarily benefits nursing homes, as they are the party who is frequently engaged in litigation.
While arbitration is rarely, if ever, in the best interest of a nursing home resident, many residents end up signing agreements to arbitrate their claim. Often, prospective residents are presented with these agreements in highly stressful times when they may feel as though they have limited options. Other times, residents sign arbitration agreements because they do not fully understand the rights they are giving up by signing, and feel pressured to sign. Consequently, many residents who suffer abuse or neglect at the hands of their caregivers are devastated to learn that they cannot file a lawsuit in court, and must proceed through the arbitration process.
In 2017, the Center for Medicare and Medicaid, under the Obama administration, implemented a ban on arbitration agreements in pre-admission paperwork for all nursing homes that accepted Medicare or Medicaid. However, under a new rule scheduled to go into effect on September 16, 2019, nursing homes will once again be able to include arbitration contracts in their pre-admission paperwork.