Enforcing Arbitration Agreements in Nursing Home Resident Contracts

The United States Supreme Court decision of Kindred Nursing Centers, L.P. v. Clark, along with federal regulatory action, has cleared the way for nursing homes in Illinois to adopt enforceable arbitration agreements as part of standard resident contracts.  For nursing homes and other long-term care facilities, these developments, which void prior prohibitions on arbitration agreements, allow for opportunities to reduce litigation and claims costs by directing disputes to arbitration.

Click here to read a full summary of the case and relevant regulation changes.

With these developments, the path is clear for nursing homes who wish to take advantage of the benefits of arbitration to include arbitration agreements in resident contracts.  While the enforceability of a particular arbitration agreement will depend on the individual contract, there are some practical things that facilities can do to strengthen the likelihood any disputes with your residents will be resolved through arbitration, and not through litigation.

Airdo Werwas, LLC is available to assist your facility in drafting arbitration terms for resident agreements, or reviewing your current resident contracts to ensure your arbitration terms are valid and enforceable. 

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