Close up image of a caretaker helping older woman walk

There is at least a temporary end to the pinball existence of nursing home pre-dispute arbitration clauses now that the Centers for Medicare & Medicaid Services has issued a final rule allowing them.

In October 2016, the Obama administration banned their use in long-term care facilities, but a legal challenge, led by nursing home lobbyists and others, and a subsequent injunction stalled that effort. 

In June 2017, under a new administration, CMS proposed a rule that would remove the ban and sought public comment. Providers say arbitration results in quicker resolution times at lower costs.

Cynthia Morton, the executive vice president of the National Association for the Support of Long-Term Care, called  final rule “good for providers that want to use them (arbitration clauses).”

“But it kind of splits the baby down the middle in that it doesn’t allow providers to require them as a condition of participation,” she noted about the July 16 announcement. “CMS was under pressure by the resident advocates on this issue.”

The new rule is part of a five-part approach by CMS to fine-tune long-term care oversight.