Federal Gov't Ban On Nursing Home Arbitration Blocked

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November 08, 2016

U.S. District Judge Michael P. Mills of Mississippi temporarily blocked enforcement of the federal government’s pending ban on arbitration in cases involving nursing homes, signaling serious doubts about the government’s authority.

In his order, Judge Mills wrote that the Centers for Medicare and Medicaid Services (CMS) "does not have the authority to ban nursing home arbitration on general policy grounds.” Judge Mills’ decision “also suggested that CMS didn’t compile solid evidence to justify its ban and so ran afoul of the Federal Arbitration Act” writes Law360.

“This court does not get the impression that CMS appreciated the gravity of an attempt to ban an entire form of arbitration, nor does it appear that the agency made the requisite efforts to actually prove that nursing home arbitration had the sort of negative effects [that] it quoted various commenters as saying it had,” the decision stated.