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Trump Administration May Remove Arbitration Clause Ban Against Nursing Homes

Trump Administration May Remove Arbitration Clause Ban Against Nursing Homes

According to information gathered by the Centers for Disease Control and Prevention (CDC), about 70% of all nursing homes are managed, run, or overseen by for-profit corporations. In recent years, these corporations have taken up the habit of including “forced arbitration clauses” in residency contracts. Such a clause means that elder residents and their families cannot sue a nursing home for damages if something goes wrong, such as the elder being hurt due to abuse or neglect. Instead, the only option legally available to them would be finding a solution through private discussions and arbitration.

Forced arbitration clauses always catch the attention of personal injury lawyers and civil rights activitists due to a number of reasons that raise suspicion. Not only do these types of clauses increase the likelihood of a lower payout to nursing home abuse or neglect victims and families, but it also protects the company from the public’s judgement. If the rest of the world never knows about a serious problem at a corporate-run assisted living facility, then there is a higher chance the same problem will occur again. Furthermore, corporations that know even the most serious of cases of neglect will only trigger compensation payouts of a lessened amount are less incentivized to ensure the highest quality of care. In a way, it allows the corporation to weigh whether it costs less to provide great care, or just pay out compensation amounts through private arbitration.

To fight forced arbitration and attempt to uphold the rights of those living in nursing homes, in 2016, the Centers for Medicare and Medicaid Services created regulations that would cut federal funding to facilities that used these clauses. The notion appears to be short-lived, though, as the Trump Administration is moving fast to remove the ban. Oppositions to the administration’s decision see it as an open favoring of hedge fund owners over the elderly that rely on nursing homes for care and living conditions.

The Daily KOS recently published an article by Paul Bland for Public Justice regarding this current public concern. You can view it by clicking here and visiting the group’s own website. If you need the help of a Greenville nursing home abuse attorney, you can call upon Christian & Christian. Our law firm can proudly say that we have won millions for our past clients through positive case results and nearly a century of combined legal experience. Dial 864.408.8890 or contact us online to begin your case today.


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