In response to the new rule published by the Centers for
Medicare & Medicaid Services (CMS) barring nursing homes that
receive federal funds from requiring their residents to agree to
pre-dispute binding arbitration as a condition of admission to a
facility (previously discussed
here), two nursing home associations, along with several
Mississippi nursing homes, have filed a lawsuit against the federal
government challenging the new rule.
The lawsuit seeks a court order preventing the rule from taking
effect on November 28. The plaintiffs claim the rule "goes too
far in prohibiting skilled and nursing care facilities from
entering into pre-dispute arbitration agreements with
residents." They also allege that the rule violates the
Federal Arbitration Act and exceeds CMS's statutory
authority.
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