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After Arizona Attorney General Kris Mayes announced the court approval of a consent judgment terminating secrecy clauses in arbitration agreements used by Bandera Healthcare, an Arizona subsidiary of The Ensign Group, it was revealed that this is the second such settlement obtained by Mayes in recent months. These secrecy clauses in assisted living and nursing home arbitration agreements have been the subject of controversy, with Mayes arguing that they violate Arizona law by requiring the parties to keep allegations of elder abuse secret. The recent case involved a lawsuit filed by the family of Robert Knight, whose death was allegedly caused by negligence at Sun West Choice Healthcare & Rehabilitation. Bandera Healthcare and Apache Trail Healthcare, the latter doing business as Sun West, discontinued the use of confidentiality clauses in January following Mayes’ intervention in a similar case.
Mayes stated that while private arbitration can be a useful way to resolve disputes, the use of secrecy clauses crosses a legal line when it comes to allegations of elder abuse. The Arizona Health Care Association had previously supported transparency between families and long-term care operators but had highlighted the unique nature of admission contracts in these settings. Mayes has committed to continuing to file interventions against operators who use secrecy clauses in their arbitration agreements, emphasizing the importance of transparency in these cases. She noted that anyone who previously signed such clauses should be aware that they are unenforceable, and she hopes that long-term care facilities in Arizona will embrace transparency without the need for further interventions from her office.
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Photo credit www.mcknightsseniorliving.com
