Bill To Ban Binding Arbitration Agreements In Nursing Home Contracts 'Warranted,' Editorial States

Congress has begun to consider several bills that seek to establish standards for binding arbitration agreements in consumer contracts, and legislation that would ban such agreements in nursing home contracts "may be warranted," a Washington Post editorial states.

According to the editorial, such agreements "mandate that any dispute between the consumer and the company be resolved through private arbitration," which is "generally cheaper and speedier than litigation." However, most consumers "aren't aware that many of the contracts they sign include" such agreements, some of which "can be unfair," and those who are aware are "helpless to do anything about them because consumers generally must accept contracts in their entirety," the editorial states.

Nursing home residents are "among the most vulnerable in the country, and decisions to place family members in these facilities are often made under the most stressful of circumstances," the editorial states, adding, "Allowing residents or their families to sue may be the only way to prod nursing homes to improve care" (Washington Post, 4/12).


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