Providers could soon be in for another fight after legislation seeking to prohibit pre-dispute arbitration agreements passed Friday in the U.S. House, 225-186.
The Forced Arbitration Injustice Repeal (FAIR) Act (H.R. 1423) would prohibit pre-dispute arbitration agreements that force arbitration of future employment, consumer, antitrust or civil rights disputes.
The legislation has been strongly rejected by providers, including the American Health Care Association. The organization said it does not support any bill that aims to ban the use of pre-dispute arbitration agreements.
Clif Porter II, AHCA’s senior vice president of government relations, previously told McKnight’s that “banning arbitration agreements would eliminate a fair and efficient legal remedy that provides benefits to patients and providers.”
“Skilled nursing facilities are just one of many healthcare providers that use pre-dispute arbitration. Residents with legitimate claims are awarded reasonable damages, oftentimes equal to the amount that would be awarded under litigation,” he said. “We strongly oppose efforts to ban this long-used, effective procedure for residents and families to pursue legal recourse.”
The legislation now heads to the Republican-controlled Senate, where it likely faces long odds, if the House roll call vote is any indication of how party allegiances play out. House Democrats voted heavily in favor of the bill, while Republicans voted against it.
