September 11, 2008
MARTINEZ: FAIRNESS IN NURSING HOME ARBITRATION ACT ADVANCES
U.S. Senator Mel Martinez (R-FL) today announced that the U.S. Senate Judiciary Committee passed legislation he authored to protect dispute resolution options for residents of nursing homes. Introduced earlier this year with Senator Herb Kohl (D-WI) as lead-cosponsor, the measure is in response to the increasing practice of nursing home facilities requiring patients to agree to arbitration as the sole vehicle for dispute resolution prior to admittance to a facility.“We are one step closer to giving nursing home residents, and their families, peace of mind that their constitutional rights are protected,” Martinez said. “Under this bill, families will not have to choose between quality care and forgoing their rights within the judicial system. We must ensure that this vulnerable population is taken care of and preserve all of their rights in the event of abuse or neglect.”
Congress enacted the Federal Arbitration Act (FAA) in 1925 with the goal of allowing parties an alternative forum to efficiently resolve business disputes. Over time, arbitration has expanded beyond commercial disputes and into many consumer settings. Today, nursing homes often require patients to sign mandatory pre-dispute arbitration clauses upon admittance to their facility. This trend is an unwarranted intrusion into a vulnerable population’s right to access the civil justice system for redress of their potential claims.
The Fairness in Nursing Home Arbitration Act reflects the FAA’s original intent by requiring that agreements to arbitrate nursing home disputes be made after the dispute has arisen. The Act does not prohibit arbitration in nursing home disputes, but it will prevent a nursing home corporation with greater bargaining power from forcing residents and their families into arbitration through a non-negotiable contract entered into prior to the dispute. It will ensure that arbitration is a voluntary and not coerced forum to resolve disputes.
The legislation now moves to the full Senate for consideration.
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