CMS finalizes new conditions of participation for long-term care facilities; prohibits use of binding arbitration agreements with residents

On Wednesday, September 28, 2016, the Centers for Medicare and Medicaid Services issued a highly anticipated final rule substantially revising and updating the existing Conditions of Participation (CoPs) for long-term care facilities. The new CoPs will have a significant impact on long-term care facilities participating in Medicare and Medicaid. Among other significant changes, the final rule prohibits long-term care facilities that accept Medicare or Medicaid from entering into an agreement for binding arbitration with a resident until after a dispute arises between the parties. This will require long-term care facilities that have binding arbitration clauses in their agreements with residents to review and update such agreements.

The regulatory changes will become effective on November 28, 2016, and will be implemented over three years in phases. Long-term care facilities will be required to come into compliance with the new and revised CoPs on or before November 28, 2019, in order to continue to receive reimbursement under the Medicare and Medicaid programs. Stay tuned for additional information.

If you have questions or would like to discuss the rule further, please contact one of Chuhak & Tecson’s Healthcare attorneys.

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.

Client alert authored by: Andrew P. Tecson, President, Kimberly T. Boike, Principal and Kathryn L. Kaler, Associate