Resident Arbitration Agreement

A resident arbitration agreement moves disputes out of court and in front of an arbitrator. It does not reduce the average value of a claim so much as remove the tail of extreme jury outcomes, which is the part underwriters price.

Whether it is worth anything depends entirely on whether it survives challenge, and the recurring failures are about formation rather than about arbitration: presented in a stack of admission paperwork during a crisis, signed by a family member whose power of attorney did not cover the decision, made a condition of admission where that is prohibited, or signed by a resident whose capacity nobody documented. Federal requirements for facilities participating in Medicare and Medicaid prohibit requiring an agreement as a condition of admission and impose explanation and copy requirements. The execution practice that earns underwriting credit is a separate document, separately signed, explained in a documented conversation, with a capacity note, a copy provided and a tracked rescission rate. Confirm with counsel whether an agreement signed by the resident binds heirs bringing an independent wrongful death claim in your state, because in several states it does not, which means the highest-value claim type is the one arbitration does not reach.