A series of arbitration rulings this fall set skilled nursing providers back on their heels.
In New Jersey, an appellate court ruled that Kindred Hospital’s missteps in presenting an arbitration agreement made it unenforceable. The judgment allows former resident John Ricciardi to litigate wound-related personal injury and negligence claims against the provider.
The court found that the arbitration agreement was mixed in with a dozen admission documents, and employees didn’t explain the arrangement to Ricciardi when he was admitted to Kindred’s Abingdon Care and Rehabilitation Center, according to court documents. He also didn’t receive a copy of the agreement.
The decision by the Superior Court of New Jersey Appellate Division is not approved for publication, meaning it does not set new precedent but applies only to the parties in that case.
It wasn’t the only recent arbitration decision in which a provider found itself on the losing side.
In late October, an Arkansas nursing home learned it would have to face a class-action lawsuit because the state Supreme Court ruled it couldn’t prove arbitration agreements for more than 200 residents were signed by legally authorized representatives.
The ruling against the Robinson Nursing and Rehabilitation Center, based in Little Rock, AR, means the center will have to fight breach of contract, deceptive trade and unjust enrichment claims made by former residents in court.
Both rulings follow the announcement this past summer that the Centers for Medicare & Medicaid Services would prohibit long-term care facilities from requiring residents to sign a binding arbitration agreement as a requirement for admission. At least two providers are already challenging that rule in court.
From the December 2019 Issue of McKnight's Long-Term Care News
