Can a Nursing Home Force You to Sign an Arbitration Agreement?

Your mom needs care. The nursing home you’ve chosen seems perfect. Then comes the paperwork. Buried in the admission documents sits an arbitration agreement. The intake coordinator slides it across the table with everything else. “Just sign here, here, and here.”

Here’s what nursing homes don’t tell you: you don’t have to sign. And even if you already did, that agreement might not be worth the paper it’s printed on.

What is a Nursing Home Arbitration Agreement?

A nursing home arbitration invalid agreement forces you to resolve disputes through private arbitration instead of going to court.

When you sign, you give up your right to:

• A trial by jury
• Public court proceedings
• Full legal discovery
• Meaningful appeals

Instead, a private arbitrator (often with ties to the nursing home industry) decides your case behind closed doors.

• The nursing home pays the arbitrator
• The proceedings stay secret
• Patterns of abuse stay hidden

Federal Law Says Nursing Home Arbitration Agreements Must Be Voluntary

Here’s what most nursing homes won’t tell you during admissions: federal regulations prohibit them from making you sign an arbitration agreement as a condition of admission or continued care.

The Centers for Medicare and Medicaid Services (CMS) issued final regulations in 2019 that protect nursing home residents.

Under 42 CFR § 483.70, nursing homes cannot:

• Require arbitration agreements as a condition of admission
• Require arbitration agreements to continue receiving care
• Pressure residents into signing through coercion or misrepresentation

The agreement must be completely voluntary. If a nursing home tells you otherwise, they’re violating federal regulations.

The regulations also require nursing homes to:

• Explain the agreement in plain language you can understand
• Provide the agreement in your language
• Confirm you understand what you’re signing
• Give you 30 days to revoke your consent after signing
• Keep the agreement separate from other admission paperwork

If the nursing home violated any of these requirements, the arbitration agreement may be unenforceable.

Common Reasons Nursing Home Arbitration Agreements Are Invalid

Courts have invalidated countless nursing home arbitration agreements.

Here are the most common grounds:

1. The resident lacked mental capacity when signing

Many nursing home residents suffer from dementia, Alzheimer’s, or other cognitive impairments. If your loved one couldn’t understand what they were signing, the agreement is void.

Courts look at whether the resident could:

• Understand the nature and consequences of the document
• Comprehend that they were giving up their right to a jury trial
• Make an informed decision about arbitration

Medical records, cognitive assessments, and testimony from healthcare providers can prove a lack of capacity.

2. The agreement is unconscionable

Courts strike down arbitration agreements that are grossly unfair or one-sided. Unconscionable provisions include:

• Requiring the resident to pay prohibitive arbitration fees
• Choosing an arbitrator with a clear bias toward the nursing home
• Selecting an arbitration venue far from where the resident lives
• Limiting discovery so severely that the resident can’t prove their case
• Restricting damages to amounts far below actual losses

3. The resident was coerced into signing

If the nursing home made signing a condition of admission despite federal regulations prohibiting this, the agreement is invalid.

Coercion also includes:

• Telling families they must sign or their loved one can’t be admitted
• Rushing families through paperwork during a medical crisis
• Failing to explain what the agreement means
• Burying the arbitration clause in other admission documents

4. The wrong person signed the agreement

Many arbitration agreements are signed by family members under a power of attorney.

Courts increasingly hold that:

• Healthcare powers of attorney don’t authorize signing arbitration agreements
• Financial powers of attorney may not extend to waiving legal rights
• The specific language in the power of attorney determines what the agent can sign

5. The agreement violates public policy

Some courts have found nursing home arbitration invalid when the agreement:

• Prevents reporting abuse to authorities
• Prohibits contacting the Long-Term Care Ombudsman
• Restricts communication with state health departments
• Covers claims of intentional abuse or gross negligence

Federal regulations explicitly prohibit arbitration agreements from discouraging residents from communicating with government officials.

What to Do If You Already Signed

Don’t panic if you already signed a nursing home arbitration agreement. You still have options.

You have 30 days to revoke consent

Federal regulations give you 30 calendar days after signing to revoke your consent to arbitration. Send written notice to the nursing home within that window.

Challenge the agreement’s enforceability

Even after 30 days, you can fight to have the agreement declared unenforceable.

Work with an attorney to:

• Review the circumstances surrounding how you signed
• Obtain medical records showing your loved one’s mental state
• Examine the agreement for unconscionable provisions
• Determine if the person who signed had authority to do so
• Document any coercion or misrepresentation by the nursing home

File your lawsuit anyway

Don’t let an arbitration agreement stop you from seeking justice.

• File your case in court
• Let the nursing home move to compel arbitration
• Fight the motion with evidence that the agreement is invalid

Many nursing homes won’t even enforce these agreements once they face a strong legal challenge. They know their agreements often violate federal regulations.

Never Sign a Pre-Dispute Arbitration Agreement

The best strategy is simple: don’t sign nursing home arbitration agreements in the first place.

When you’re admitting a loved one to a nursing home:

• Read every document carefully – Don’t let staff rush you through paperwork
• Cross out arbitration clauses – You can strike through and initial these provisions
• Write “REFUSED” across arbitration agreements – Make your rejection crystal clear
• Get written confirmation – Ask for documentation that admission isn’t conditioned on arbitration
• Bring an attorney – Have legal representation review admission documents before signing

Remember: you have the right to refuse.

The nursing home cannot deny admission or threaten to discharge your loved one because you won’t sign an arbitration agreement.

If staff pressure you to sign, report them to:

• The Tennessee Department of Health
• The Long-Term Care Ombudsman
• CMS through their complaint process

You Have Legal Options Despite Arbitration Clauses

At The Higgins Firm, we’ve successfully challenged countless nursing home arbitration agreements on behalf of Tennessee families.

We know the tactics facilities use to pressure families into signing. We know which provisions make agreements unenforceable. We know how to build the evidence to prove these agreements are invalid.

Don’t let a nursing home arbitration agreement stand between your family and justice. Call The Higgins Firm today. We’ll evaluate whether that agreement is enforceable and fight to have it thrown out if it’s not.

Your loved one deserved better care. You deserve your day in court.