US Supreme Court Refuses to Hear Case on Nursing Home Arbitration Rule

Posted on October 6, 2022 by Mark Schulz

The nation's highest court has declined to weigh in on a case involving nursing homes and the Centers for Medicare and Medicaid Services (CMS) arbitration rule that nursing home industry groups argue places "burdensome" requirements on facilities. In other words, the Eighth US Circuit Court of Appeals' October 2021 decision will remain intact.

The lawsuit alleged that the CMS arbitration rule directly conflicted with various federal arbitration laws, including the Administrative Procedure Act, the Federal Arbitration Act, and the Regulatory Flexibility Act. However, the Eighth Circuit Court of Appeals judges rejected those arguments. The Court stated, "In our view, it is reasonable for CMS to conclude that regulating the use of arbitration agreements in long-term care facilities furthers the health, safety, and well-being of residents, particularly during the critical stage when a resident is first admitted to a facility." 

The Eighth Circuit Court also determined that CMS and the US Department of Health and Human Services were not exceeding their authorities when regulating the administrative side of skilled nursing facilities.

The CMS arbitration rule also allows residents or their representatives to rescind an arbitration agreement within 30 days of signing and requires that any agreement be fully explained to the resident. It cannot include language that bans residents or their families from contacting state, federal, and local authorities. The facility must keep copies of the signed agreement and any final arbitration decisions for five years.

The case is Northport Health Services of Arkansas, LLC v. Department of Health and Human Services, et al.