Cutoff Of Benefits To Nursing Home Is Upheld

1980

In O’Bannon v. Town Court Nursing Center, residents sued after the federal government ruled that their nursing home was no longer eligible to receive Medicare and Medicaid payments. The U.S. Supreme Court rules that the residents do not have a “life, liberty, or property” interest in their nursing home’s receipt of Medicare and Medicaid payments. Although some residents may have to leave because they cannot afford to pay full-price rates, the Court finds there is no constitutional right to live in the nursing home of one’s choice. The Court notes that the hardship that the residents face is an indirect result of the government’s legitimate actions against the nursing home.