Arbitration Clauses in Nursing Home Contracts: What You Should Know

Many nursing homes include arbitration clauses in admission contracts, often presented during stressful and time-sensitive admissions. These clauses can significantly affect a family’s ability to pursue a claim if abuse, neglect, or injury occurs.

What Is an Arbitration Clause?

An arbitration clause requires disputes to be resolved through private arbitration instead of a public court trial. By signing the agreement, the resident or family may waive the right to sue the nursing home in court or have a jury hear the case. Arbitration differs from court in several ways:

• A private arbitrator decides the case instead of a judge or jury.
• Proceedings remain confidential.
• Evidence rules are often more limited.
• Appeals are extremely restricted.
• Nursing homes often select or influence the arbitration forum.

Facilities frequently promote arbitration as faster or less expensive, but these clauses often favor the nursing home.

Why Do Nursing Homes Use Arbitration Clauses?

Nursing homes include arbitration clauses to limit liability and reduce public scrutiny. Arbitration keeps allegations out of the court system and away from public records. It also discourages residents from pursuing claims altogether.

How Arbitration Clauses Appear in Contracts

Arbitration clauses often appear deep within lengthy admission agreements. Families may not realize they agreed to arbitration until a serious incident occurs. Common characteristics include:

• Small or dense print.
• Separate signature pages that appear routine.
• Language that suggests arbitration is mandatory.
• Limited explanation of legal consequences.
• Pressure to sign during admission or transfer.

Facilities may imply that signing is required for admission, even when it is not.

Are Arbitration Clauses Always Enforceable?

Arbitration clauses are not automatically enforceable in every case. Courts examine how the agreement was presented and whether it meets fairness standards. Factors that may affect enforceability include:

• Whether the resident had mental capacity to consent.
• Whether a legal representative had proper authority.
• Whether the clause was clearly explained.
• Whether signing was voluntary.
• Whether the clause is unconscionable or one-sided.

If a resident lacked capacity or if the facility used misleading tactics, a court may refuse to enforce the clause.

How Arbitration Can Affect Abuse and Neglect Claims

Arbitration can significantly limit a family’s ability to hold a nursing home accountable for abuse or neglect. The process often restricts access to internal records, reduces opportunities to question staff under oath, and places decisions in the hands of arbitrators who may regularly work with nursing home operators. Arbitration also lowers the likelihood of meaningful damage awards and makes it harder to expose systemic problems within a facility, all of which can weaken an abuse or neglect claim.

How a Philadelphia Nursing Home Abuse Lawyer Can Help With an Abuse Claim When There Is an Arbitration Clause

An attorney can review the admission agreement to evaluate whether the arbitration clause is enforceable, including whether the resident had legal capacity to consent and the signer had proper authority. A lawyer also examines how the facility presented the clause and whether the nursing home used pressure, misleading language, or unfair tactics during admission.

When arbitration applies, a lawyer still plays a vital role. They ensure evidence is collected, challenges procedural limitations, and presents medical and facility records in a way that demonstrates abuse or neglect. A lawyer also counters attempts by the nursing home to use arbitration as a shield to minimize responsibility.

Contact Us Today

If you have questions about an arbitration clause in a nursing home contract or believe a facility is using one to avoid responsibility, speak with an experienced Philadelphia Nursing Home Abuse Lawyer at Rosenbaum & Associates. Call (215) 569-0200 or message online for a free consultation.