Nursing Home Arbitration Agreements: What You Need to Know

Learn how to protect your loved one’s rights and options for seeking compensation

When we place our loved ones in a long-term facility, we expect that they’ll be treated with the utmost dignity and care. However, elder abuse and neglect in nursing homes is a growing concern in Alabama and nursing facilities across the nation. Research shows that one in six individuals aged 60 and older have experienced some form of abuse in community settings within the past year.

If you place your loved one in an Alabama nursing home, you may need to take legal action on their behalf. You'll likely encounter many forms and documents to sign. Among these, you may find an arbitration agreement. This document can impact your loved one’s rights if issues arise during their stay.

That’s why it’s important to understand the implications of nursing home arbitration agreements. Here’s what families in Alabama need to know if they encounter this type of agreement.

What is arbitration?

Arbitration is a method of resolving disputes outside of court. In arbitration, both parties present their case to a neutral third party, called an arbitrator, instead of a judge or jury. The arbitrator then makes a decision that's typically binding on both parties.

This process differs from traditional court litigation in several ways. For example, it's usually faster than going to court, and the proceedings are private rather than public.

Additionally, arbitration is usually private, meaning there may be less public accountability for the nursing home's actions. This can make it harder to expose systemic issues within the facility and ensure improvements are made to prevent future harm to residents.

What is an arbitration agreement?

An arbitration agreement is a contract where both parties agree to resolve any future disputes through arbitration rather than going to court.

For nursing homes, these agreements typically state that if you have a complaint against the facility (whether it's about poor care, neglect, or abuse), you'll take that complaint to arbitration instead of filing a lawsuit. This can severely affect your ability to seek justice and receive fair compensation on behalf of your loved one should you take legal action for nursing home abuse, neglect, or wrongful death.

The biggest drawback to arbitration agreements is that they’re industry-friendly. This means that while they can rule any way, they usually rule in favor of nursing homes.

Why do nursing homes have an arbitration agreement clause?

Nursing homes include arbitration clauses in their contracts for several reasons, including:

Unlike public court proceedings, arbitration keeps disputes and outcomes private.
There’s no chance of appealing an arbitration, no matter how bad the ruling is.
Nursing homes can often influence the selection of arbitrators and the rules governing the arbitration.

For nursing homes, these factors can lead to lower legal costs and potentially smaller payouts in dispute cases. However, these same factors can disadvantage residents and their families when seeking justice for neglect or abuse.

Do I have to sign an arbitration agreement with the nursing home?

You don't have to sign an arbitration agreement. It's a voluntary agreement, and you have the right to refuse to sign it. However, many people don't realize they have this option or feel pressured to sign everything during the admissions process.

Remember, not signing an arbitration agreement with the nursing facility means you retain the right to pursue legal action in court, which can provide a more transparent and potentially fairer resolution to incidents involving abuse or neglect.

Can a nursing home force you to sign it?

Legally, a nursing home can’t force you to sign an arbitration agreement. The Centers for Medicare and Medicaid Services (CMS) prohibits nursing homes from requiring residents to sign these agreements as a condition of admission or to continue receiving care.

If a nursing home tells you that you must sign the arbitration agreement to be admitted or to stay in the facility, they're violating federal regulations. You have the right to refuse to sign without jeopardizing your admission or continued stay. If you find yourself in this situation, you can seek legal advice or contact the CMS for support and guidance.

Are these agreements legally binding?

If you sign an arbitration agreement, it's generally considered legally binding. However, there are some circumstances where a court might declare the agreement unenforceable. For example:

You were coerced into signing.
The agreement is unconscionable (grossly unfair).
You lacked the mental capacity to understand what you were signing.
The agreement violates state or federal law.

What happens to my claim if it goes to arbitration?

If your claim goes to arbitration, the process will look different from a court case. Both parties usually have a say in choosing an arbitrator. Often, the nursing home's agreement specifies how this selection will occur.

The fact-finding phase, known as discovery, is typically more limited in arbitration than in court. This can make it harder to gather all the evidence you might need to support your claim. Plus, the arbitration hearing is less formal than a court trial. Both sides present their case to the arbitrator, who may ask questions.

The arbitrator makes a decision, usually within a specified timeframe after the hearing. This decision is typically final and binding. Unlike court decisions, arbitration decisions are very difficult to appeal. You can only challenge the decision in very specific circumstances, such as if there was fraud or the arbitrator exceeded their authority.

How much is my claim worth in arbitration?

It's difficult to predict the value of a nursing home negligence claim in arbitration. However, it’s usually only a fraction of what you would be awarded from a settlement without arbitration or a jury verdict. Arbitration proceedings and outcomes are usually confidential. This lack of public record makes it harder to compare cases or establish precedents, which can benefit nursing homes in future disputes.

If you refuse to sign an arbitration agreement and take legal action against a nursing home, several factors can influence your settlement, including:

The severity of the neglect or abuse.
The extent of injuries or damages.
The quality of evidence presented.
The arbitrator's background and experience.

It’s best to speak to an experienced Alabama nursing home abuse and neglect attorney who can help you determine how much money you’re eligible for.

How can I avoid going to arbitration with a nursing home?

To avoid being bound by an arbitration agreement with a nursing home, it’s important to do the following:

Don’t take the nursing home’s word for it: Nursing home administrators often want you to sign an arbitration agreement as quickly as possible. They’re not typically forthcoming about the consequences of doing so. Plus, they may ask you to sign, but may not inform you of your right not to sign.
Read all documents carefully: There’s no turning back once you sign an arbitration agreement. Don't sign anything without thoroughly reading and understanding it.
Refuse to sign: Again, you have the right to refuse to sign an arbitration agreement. Cross out the arbitration clause or write "I do not agree to arbitration" before signing the overall contract.
Choose a different facility: If possible, consider choosing a nursing home that doesn't have an arbitration agreement.
Rescind the agreement: If you've already signed an arbitration agreement, check if there's a rescission period. Many agreements allow you to cancel within a certain timeframe (often 30 days) after signing.

Don’t let a nursing home trick you into signing your rights away

When moving a loved one into a nursing facility in Alabama, it's essential to protect your rights. Remember, you are not obligated to sign an arbitration agreement with a nursing home, and refusing to sign ensures you retain the right to take legal action in court should the need arise.

Always read all documents carefully, and don't hesitate to ask questions. If you're ever pressured to sign an agreement that feels uncomfortable, seek legal advice to fully understand your rights and options. Don't let anyone take away your right to hold a negligent nursing facility accountable.

If you suspect your loved one has been harmed in an Alabama nursing home due to abuse or neglect, don't wait to take action. Remove them from the facility immediately and get them checked out by an independent doctor right away. The consequences of such mistreatment can lead to serious injuries, health complications, and even death, so you have no time to waste.

Then, contact an Alabama nursing home abuse and neglect attorney to review your potential legal options. At Shuttlesworth Law Firm, P.C., we understand the pain and anger family members experience when their loved one is harmed in a nursing facility, and we are here to help.

Attorney Perry Shuttlesworth has a proven track record of fighting for the rights of vulnerable seniors and their families. Our law firm has achieved six- to seven-figure verdicts in dozens of cases, including:

A $1.2 million verdict in a case where a nursing home failed to provide oxygen to a resident.
A $1 million settlement in a wrongful death case stemming from neglect that led to fatal bedsores.
A $750,000 arbitration award in a nursing home wrongful death case linked to a medication error.
A $725,000 settlement in a nursing home wrongful death case stemming from a patient’s death due to dehydration and a urinary tract infection.
A $700,000 settlement in a wrongful death case for a resident who suffered fatal bedsores during to nursing home neglect.
A $625,000 arbitration award in a nursing home neglect wrongful death case stemming from dehydration, malnutrition, and death.
A $500,000 settlement in an improper nursing home training wrongful death linked to improper treatment of a resident, resulting in her death.
A $450,000 arbitration award in a nursing home neglect wrongful death case caused by a resident’s fall, surgery, and death.
A $425,000 settlement in a nursing home neglect wrongful death due to malnutrition, dehydration, sepsis secondary to UTI, and death.
A $385,000 settlement in a nursing home wrongful death case after an elderly patient died due to a PEG tube becoming dislodged.
A $375,000 settlement in a nursing home wrongful death stemming from a resident’s malnutrition, infected wound, and death due to neglect.

Don't let your loved one suffer in silence. Contact us online or call our Birmingham law office today for a free consultation. We'll listen to your concerns, explain your potential legal options, and answer any questions you have regarding your case.

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