What are Kentucky Nursing Home and Hospital Arbitration Agreements?
When a loved one seeks care at a nursing home, hospital, or assisted living facility, families often run through stacks of paperwork, signing where indicated and reviewing documents briefly. These documents include consent forms, insurance information, HIPAA information, and policies—but you’ll likely also find an arbitration agreement among the admission documents at many medical facilities.
Arbitration agreements require that any disputes that arise between the patient and the facility go through the arbitration process, which results in a legally binding decision. The patient generally waives the right to have their claim decided by a judge or jury in court and instead agrees to resolve disputes through arbitration.
If you or someone you love is pursuing a personal injury or medical malpractice claim and you’re just now finding out that you signed an arbitration agreement, let’s talk. Our team of nursing home attorneys can help you understand your obligations and rights. Call Crandall & Pera Law, LLC to speak with our nursing home abuse attorneys.
What is an arbitration agreement?
Arbitration is a form of private dispute resolution that allows parties to resolve issues outside the courtroom. Rather than filing a lawsuit in court, the party that raises the dispute must agree to present their dispute to a neutral third party. The arbitrator serves as that neutral third party, listening to the facts of the case and gathering evidence from both sides. They then make a legally binding decision regarding the case.
There are several ways that arbitration is different from traditional litigation. These differences include:
- No jury; the arbitrator makes their decision alone
- Proceedings are private, while court filings are public record
- The process is overall less formal
- Appeal options tend to be limited
It is very common for healthcare providers to include arbitration clauses in their admission paperwork. When you sign that paperwork, you agree to settle any future disputes via arbitration, rather than taking your issue to court.
Why do nursing homes and hospitals use arbitration agreements?
Healthcare facilities can benefit greatly from the use of arbitration agreements. Administrators generally find arbitration to be a more efficient and cost-effective way to handle disputes. While litigation can drag on for months or even years, arbitration results in a clear outcome relatively quickly. Lawsuits get expensive very quickly, and healthcare administrators may worry that even one serious lawsuit could drain their legal budget.
Because arbitration tends to be private, healthcare facilities can also use arbitration as a way to protect their reputation. If patients file lawsuits, everything that comes out in discovery may become public knowledge.
Finally, business owners often include arbitration clauses because arbitration tends to result in more predictable outcomes for them. If a case goes before a jury and the details are particularly emotional, it could result in a massive jury award. That’s somewhat less likely when the outcome is decided by one arbitrator.
How arbitration agreements may impact patients’ legal rights
Arbitration agreements can affect a patient’s legal rights if they have a serious issue with a healthcare facility. First, they are giving up their right to a jury trial. That may also limit discovery, depending on the arbitration rules and agreement. Because their ability to gather evidence and appeal an arbitrator’s decision may be limited, patients’ rights are limited after they sign an arbitration agreement.
Are nursing home arbitration agreements enforceable in Kentucky?
Arbitration clauses are generally enforceable in Kentucky. While patients may find this unfair, especially if they sign documents under duress or while seeking emergency medical care, many courts have enforced arbitration agreements in Kentucky. One major factor affecting this is the Federal Arbitration Act, which generally favors the enforcement of arbitration agreements in contracts.
That doesn’t mean that your arbitration agreement is definitely enforceable—there are cases where agreements cannot be enforced. For example, if a family member signs paperwork on behalf of a patient without having the legal authority to do so, the agreement may not be enforceable. Courts may also look at whether or not the agreement was presented in a clear and understandable way.
Frustrated by your arbitration agreement and legal options? Reach out to Crandall & Pera Law, LLC
If you want to take legal action against a healthcare facility but you’re limited by an arbitration agreement, let’s talk about your options. Contact Crandall & Pera Law, LLC today to speak with an attorney. Our legal team can review the agreement, explain how it may affect your ability to bring a claim, and help determine whether there are any grounds to challenge its enforceability. Even when arbitration applies, it’s still possible to pursue compensation. Understanding your rights and the terms of the agreement can help you make informed decisions about how to move forward.