The U.S. Supreme Court decided Friday to weigh in on the validity of nursing home arbitration agreements.
In the case at hand, a subsidiary of Kindred Healthcare is fighting the daughters of two former residents. Although the daughters signed admission paperwork for their parents, Kentucky’s Supreme Court said the arbitration agreements in those contracts violated the residents’ “God-given” right to litigate any dispute. The daughters sued Kindred Nursing Centers for negligence and wrongful death after their parents died at the facility. Kindred says they had power of attorney for their parents when they signed the disputed contracts. The CMS issued a rule in September that bars nursing homes from entering binding arbitration agreements before a dispute arises.