The bipartisan Fairness in Nursing Home Arbitration Act of 2009 “prevents nursing homes from deliberately hiding clauses within the fine print of contracts that force seniors to surrender their right to trial by jury and enter an unfair and one-sided mandatory binding arbitration process,” according to the American Association for Justice.

This is good news for the thousands of nursing home residents and their families, many of whom have already signed these one-sided agreements that leave them defenseless, like the family of Dean Cole.

In January, we told you about Cole, whose family had filed a wrongful death lawsuit against the nursing home where Cole lived for just 22 days. During his short stay at Golden Living Center Greeley, Cole, who suffered from dementia and required assistance, stopped eating or taking medication and dropped an alarming 20 pounds. Even after his wife questioned nursing home staff about his weight loss, they told her Cole was fine. He was later admitted to the hospital and diagnosed with severe dehydration, renal failure, pneumonia and colitis. He died 10 days later.

Unfortunately, Cole’s family was made to sign a one-sided mandatory binding arbitration clause, which denied them the right to trail by jury. The case is still pending.

“The Fairness in Nursing Home Arbitration Act will make sure negligent nursing home corporations can be held accountable by our most vulnerable citizens,” said American Association for Justice President Les Weisbrod. “This bill will prevent nursing home corporations from unfairly preying on seniors and stripping away their legal rights. Arbitration should only be voluntarily, not hidden away in the fine print of contracts during our seniors’ greatest time of need.”

SOURCE: Nursing Home Abuse › Bill protects nursing home residents from signing arbitration clauses

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The AARP and trial lawyers say that the nursing home industry is simply trying to protect itself at a time when reports of violations at nursing homes are running rampant in the media. The opposition already has caused the powerful nursing home industry to revamp its “The Nursing Home Patient Protection Act of 2008” proposal, raising its proposed cap from $300,000 to $500,000. The lobby group also removed language opposed by AARP that would have allowed nursing homes to require their patients to sign arbitration agreements to prevent lawsuits and to require nursing home suits to have the same legal restrictions as medical malpractice claims.

According to a study conducted by the nursing home industry, Tennessee nursing homes paid nearly $5,000 on average per patient on liability costs, whereas states that had tort reform paid about a quarter of that on average per patient. A nursing home representative said that the mounting costs paid by nursing homes to defend lawsuits eats into profits that could be invested to improve patient care.

Tennessee Rep. Mike Turner, a firefighter who fought the 2003 Tennessee nursing home fire that killed 16 people, says the caps would open the door for more negligence. “These are our most vulnerable people and they earned the right to be treated with dignity in their old age,” Turner said to the paper. “I just think by capping it, we’ve done a disservice to them.”

The nursing home industry and trial lawyers have agreed to meet later this week to discuss a reasonable compromise.

SOURCE: Nursing Home Abuse › Tennessee nursing homes lobby for caps on damage claims

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Nursing home residents and their families who sign mandatory arbitration clauses when being admitted into long-term care facilities, are one step closer to regaining their rights to hold those facilities accountable in court for abuse and neglect, according to the Senior Journal. The Journal reported that the Senate Judiciary Committee this week approved the bi-partisan bill - the Fairness in Nursing Home Arbitration Act of 2008. The bill moves to the Senate for approval.

According to the Senior Journal the bill would invalidate mandatory arbitration clauses in nursing home, assisted living, and other long-term care facility contracts. Under the bill, residents and families could voluntarily choose to arbitrate an issue after a problem occurred, but they would no longer have to agree to give up their right to sue the facility if it severely abused, neglected, or financially exploited the resident.

The Journal noted that nursing homes often are a last resort for families, and many times decisions made during admission are done under desperate or emergency situations. “Individuals and families have little or no opportunity to fully consider and understand the consequences of an arbitration provision buried within and 40- or 50-page admissions document that they are asked to sign during the admissions process.  In many cases, individuals are unaware that they had signed an arbitration agreement,” according to the Journal report.

SOURCE: Nursing Home Abuse › Nursing home residents closer to regaining right to sue

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“We believe the vast majority of nursing homes are doing a very good job and working hard to deliver quality care,” Sen. Kohl told the committee. “But we must protect the rights of those who receive inadequate care to hold the facilities accountable.” He said the bill would “send a strong message to underperforming facilities that harmful care is not acceptable.”

Sen. Martinez said the practice of nursing homes requiring residents to sign mandatory arbitration agreements is an overreach of the original purpose of the 1925 Federal Arbitration Act, which he says provides for voluntary arbitration agreements. Requiring a mandatory arbitration agreement as a condition of admittance to a facility is taking advantage of the nation’s most vulnerable citizens, he said.

“I was a practicing attorney for many years, and I believe alternative dispute resolution is a legitimate way to resolve disputes,” Sen. Martinez said, “but it should apply to … people in similar positions when entering an agreement to arbitrate. Prospective nursing home residents – our nation’s most vulnerable population – should not be forced to sign an arbitration agreement as a condition of being admitted to a nursing home.”

Senators Martinez and Kohl pointed out that when patients and their families are at the point of entering a nursing home facility, the patient often is in need of immediate care. Sometimes there are no alternative facilities in close proximity to the patient’s home. Families feel they must sign the agreement in order to ensure their loved one gets needed care right away. Most, they say, do not realize they are relinquishing their rights to go to court.

Sen. Orrin Hatch, R-Utah, spoke in opposition of the bill. He expressed concern that removing arbitration arrangements from nursing homes will cause a rise in long term liability costs and ultimately result in a worse quality of care for the nation’s elderly. He said he believes the proposed Senate bill will result in small business owners going out of business and less well-off seniors unable to afford resulting higher prices.

“I am deeply concerned about nursing home abuse,” Sen. Hatch said. “The abuse of a patient’s trust cannot be tolerated.” However, he said, he feels the problems are being addressed by the nursing home industry.

Sen. Martinez disagrees. Arbitration, he says, “remov[es] the one incentive the industry has to self-regulate and police itself and provide a level of care that I believe is what all of us would like to see for our most vulnerable residents.”

A webcast of the meeting is available at the web site for the United States Senate Special Committee on Aging.

SOURCE: Nursing Home Abuse › U.S. Senate debates arbitration

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