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Press Release

Nursing Home Industry Files Lawsuit in Last-Ditch Bid to Keep Abuse and Neglect Secret

Industry's Lawsuit Seeks to Undo New Rule Protecting Nursing Home Residents' Rights

October 17,2016

Washington, DC—The following is a statement from American Association for Justice President Julie Braman Kane in response to the American Health Care Association filing a lawsuit today challenging the Centers for Medicare & Medicaid’s new regulation prohibiting nursing homes’ use of pre-dispute arbitration clauses:

“Cases of nursing home residents being abused and mistreated are far too common and corporate nursing homes have prioritized profits over people for years. The nursing home industry has hidden behind forced arbitration clauses to cover up abuse and neglect, and now they’re upset that regulators are stepping in.

“Rather than work to better protect residents and their families, these corporate nursing homes filed a lawsuit in a last-ditch effort to hang on to forced arbitration. Ironically, the nursing home industry is using a lawsuit to try to deprive residents and their families of that same right. The industry is grasping at straws because CMS clearly and accurately stated its legal authority to regulate the use of forced arbitration by nursing homes.”


Corporations bury forced arbitration clauses in the fine print of everything from nursing home admissions forms to employee handbooks and credit card terms of service. These abusive clauses force Americans’ claims into arbitration – a rigged, secretive system designed by corporations to deny justice and accountability. Fortunately CMS has finally put an end to nursing homes’ use of the corporate bullying tactic of forced arbitration clauses, thus restoring the rights of residents and their families to hold these corporations accountable.

Ben Somberg
Phone: 202-965-6645