Signing on the Dotted-Line: Arbitration Clauses Have Found New Footing in Texas Nursing Home Admission Agreements

The fog that has surrounded the enforceability of arbitration agreements between providers and residents in Texas nursing facilities has recently dissipated a bit thanks to a recent Texas Supreme Court decision.

According to Fredericksburg Care Co. v. Perez, a recent opinion by the Texas Supreme Court, a long-term care facility was entitled to arbitrate a dispute—rather than going to court—even though the facility’s admission agreement, which contained an arbitration provision, did not conform to the state requirements under the Texas Medical Liability Act (TMLA), which are perceived by many providers as overly burdensome. 

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