The Hidden Dangers of Nursing Home Arbitration Agreements

The day you move a loved one into a nursing home is filled with stress and emotions. Amid the flurry of paperwork and emotions, you’re often presented with an admission agreement, a daunting document that can be over a hundred pages long. Hidden within this legal word salad, you might find something called an arbitration clause—a clause that, once signed, could strip you of your right to sue the nursing home in a court of law. In this blog post, we’ll shed light on nursing home arbitration agreements and why you should never sign them.

1. The Rush to Sign

As families transition their loved ones into nursing homes, they are often in a hurry to get back to their family members, and this rush can lead them to inadvertently sign arbitration agreements without fully understanding the consequences. These agreements are usually buried deep within the stack of admission documents, alongside residents’ rights and other essential information. Families may sign them unknowingly, not realizing they’re waiving their right to sue the nursing home in the event of abuse or neglect.

2. The Power of Arbitration Agreements

Arbitration agreements are powerful tools used by the nursing home industry to prevent residents and their families from seeking justice through the court system. These agreements essentially require you to resolve any disputes through arbitration, a process that often favors the nursing home. Arbitrators, who are usually lawyers or retired judges, are not like juries. They tend to be legalistic and conservative, and they are paid by the nursing home. Consequently, they are more likely to rule in favor of the nursing home, protecting the industry’s interests. If you think about it an arbitrator that a nursing home agrees to arbitrate with likely has dozens of similar arbitrations yet you will only have one with them. That arbitrator, if he/she wants to continue arbitrating for that nursing home, has a direct incentive to rule in the nursing home’s favor. If they rule too strongly against the nursing home the nursing home will not agree to that mediator again in the future. You, will likely have only one arbitration in your life, while the nursing home will likely have dozens per year. Who do you think the arbitrator is more likely to help? 

3. Buried in Admission Documents

What makes these arbitration agreements particularly sinister is that they are presented for signing before any disputes have arisen. Families are asked to sign away their rights to sue before they even know what might go wrong. These agreements are often not explained adequately, and families are not given the opportunity to fully understand the implications of their decision.

4. Your Right to Choose

Here’s what you need to know as an empowered advocate for your loved one: 

• You do not have to sign the arbitration agreement.
• The facility cannot refuse admission or kick your loved one out for not signing it.
• You have 30 days to rescind the agreement if you do sign it.

Furthermore, the arbitration agreement must clearly state that signing it is not a condition of admission and must allow for a 30-day rescission period. The agreement must also be written in plain language and in a language that you understand. Additionally, it cannot contain language that discourages you from communicating with regulatory authorities.

Conclusion

In the rush and emotional upheaval of placing a loved one in a nursing home, it’s essential not to overlook the fine print. Arbitration agreements are not in your best interest, as they limit your ability to seek justice in the event of abuse, neglect, or wrongful death. Never sign a pre-dispute arbitration agreement with a nursing home. Your right to a jury trial is a powerful tool, and you should retain it to hold nursing homes accountable for their actions. If you are ever pressured into signing such an agreement, seek legal counsel immediately. Protect your loved one and their rights.