Bill Summaries: H822 (2017-2018 Session)

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  • Summary date: Apr 12 2017 - View summary

    Enacts new GS 131E-114.10, which provides as follows. Prohibits a long‑term care facility from entering into a pre‑dispute binding arbitration agreement with any resident or the resident's representative or requiring that a resident or the resident's representative sign a pre‑dispute arbitration agreement as a condition of admission to the facility. Defines a pre‑dispute binding arbitration agreement as an agreement between the facility and a resident or the resident's representative to use binding arbitration to resolve a dispute between the parties, which is entered into before a dispute arises between parties.

    Allows a facility, after a dispute between a long‑term care facility and a resident arises, to request the resident or the resident's representative to enter into a post‑dispute binding arbitration agreement if:  (1) the long‑term care facility explains the agreement to the resident and the resident's representative in a form and manner that the resident and the resident's representative understand, including in a language that the resident and the resident's representative understand; (2) the resident acknowledges that he or she understands the agreement; (3) the agreement is entered into voluntarily; provides for the selection of a neutral arbitrator agreed upon by both parties; provides for selection of a venue convenient to both parties; does not contain any language that prohibits or discourages the resident or any other person from communicating with federal, State, or local officials, including federal and State surveyors, other federal or State health department employees, and representatives of the Department of Health and Human Services and the State Office of Long‑Term Care Ombudsman. The act defines a post‑dispute binding arbitration agreement as an agreement between the facility and a resident or the resident's representative to use binding arbitration to resolve a dispute between the parties, which is entered into after a dispute arises between the parties.

    Specifies that a resident's right to remain in a long-term care facility is not contingent upon signing a binding arbitration agreement.

    Specifies the conditions under which an individual other than the facility resident may sign a binding arbitration agreement on behalf of the resident.

    Requires the facility to retain and provide for inspection a copy of the signed binding arbitration agreement and the final decision of the arbitrator for at least five years from the date a long-term care facility and a resident resolve a dispute with binding arbitration.

    Effective when the act becomes law and applies to binding arbitration agreements entered into by residents of long‑term care facilities, as enacted by this act, on or after that date.