Beasley Allen principal Ben Locklar returns to the Beasley Allen Report this week to share the important implications to patients of a new rule issued in September by the Centers for Medicare and Medicaid Services (CMS) regarding nursing homes and long-term care facilities. He talks with host and fellow Beasley Allen lawyer Gibson Vance about the new rule, which bans such facilities from requiring patients to sign pre-dispute binding arbitration clauses. While the ban only applies to facilities receiving benefits from Medicare or Medicaid, Locklar explains that most nursing home and long-term care facilities receive federal funding and must comply with the new rule. Removing binding arbitration from contracts is in the patients’ best interests. By banning the clauses, the law restores the patients’ rights to sue their facility in court and is a step forward in improving patient care and safety.
The ban was slated to take effect November 28, 2016. Unfortunately, Michael P. Mills, U.S. District Court Judge for the Northern District of Mississippi in Oxford, ordered a stay of the new rule until the court can review it further to determine its validity.