Arbitration agreements decision:  On May 7, 2009, the Supreme Court of Ohio issued a decision, published in the July 13, 2009 Ohio Bar Report, regarding arbitration agreements between nursing home residents and the facility. Two questions were presented to the Supreme Court of Ohio for determination: (1) whether a resident’s age can render an arbitration agreement procedurally unconscionable, and (2) whether an arbitration agreement which waives the right to trial and to recover punitive damages and attorneys’ fees is substantively unconscionable. A divided Supreme Court answered both questions in the negative. There were four Justices joining in the majority opinion, two Justices that concurred in the Decision and one Justice. Though not directly stated to be a part of its opinion, a good deal of the majority and the dissent discuss the Nursing Home Patient’s Bill of Rights, R.C. 3721.10 et seq. The reason for this is the provision in the arbitration agreement before the Court that “any dispute” was subject to arbitration. The implicit holding of the Supreme Court is that actions revolving around the Patient’s Bill of Rights may be subject to an arbitration agreement. Members are encouraged to review any existing arbitration agreement and consult with their counsel to see that it is consistent with the opinion of the Supreme Court. Members considering the adoption of arbitration agreements are encouraged to consult with counsel.

Office of the Inspector General Announcement Regarding Program Exclusion:  On July 13, the Office of the Attorney General issued a press release announcing that the president and chairman of the board of Pleasant Care Corporation agreed to permanent exclusion from all federal health care programs after an investigation of care provided at facilities formerly operated by Pleasant Care between 2003 and 2007.

It is the OIG’s position that the president’s management put nursing home residents at risk by providing care well below professionally recognized standards including inadequate hydration and nutrition, inappropriate wound care and inadequate staffing levels following an investigation of substandard care at Pleasant Care Corporation’s facilities. 


For assistance and advice regarding the above topics or other health care law issues, please contact Geoffrey Webster at 614.334.6196 or at gewebster@cwslaw.com