Nursing Home Strategies Dealing With an Arbitration Agreement

By Fredrick P. Niemann, Esq; an Appealing Discharge from Nursing Home Lawyer


If a resident is eligible for payment of his nursing home care through Medicare or Medicaid, federal law prohibits the nursing home from asking any more from the resident than the payment of any co-payment or deductible authorized by law.  Arguably, these laws prohibit a nursing home from requiring a resident to sign an arbitration agreement, although recent decisions have rejected this argument.

In some states, a nursing home can request but not demand the signing of an arbitration agreement.

In situations in which the resident has moved into the nursing home, Fredrick Niemann recommends that the resident or resident’s representative refuse to sign an arbitration agreement.  As is the case with “Responsible party” provisions, a polite but firm explanation is advisable.

A signed arbitration agreement is binding upon the resident and the facility in New Jersey based upon a recent appellate court case.   Most defenses are based on unconscionability. The Federal Arbitration Act generally preempts New Jersey which has been anti-arbitration. But, if the resident is already living in the nursing home then a refusal to sign the arbitration agreement is not grounds for discharge.

Contact me personally today to discuss your New Jersey nursing home discharge matter.  I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns.  You can reach me toll free at (855) 376-5291 or e-mail me at