Failure to Ensure Neutral Arbitration Process
Penalty
Summary
The facility failed to ensure a neutral and fair arbitration process as required by regulations. The review of the facility's Admission Agreement packet revealed that the 'Indemnification' statement did not clearly identify itself as an arbitration agreement. Furthermore, it did not provide for the selection of a neutral arbitrator agreed upon by both the resident or their representative and the facility. This omission is contrary to the regulatory requirement that mandates the selection of an impartial third-party arbitrator agreed upon by both parties to resolve disputes. During an interview, the Nursing Home Administrator acknowledged that the language in the admission and financial agreement might not clearly identify the indemnification statement as an arbitration agreement. Additionally, it was confirmed that the agreement did not ensure a neutral and fair arbitration process by failing to allow both parties to agree on the selection of a neutral arbitrator. This deficiency highlights the facility's non-compliance with the requirement to avoid any appearance of bias or conflict of interest in the arbitration process.
Plan Of Correction
1. No residents were affected. 2. and 3. The facility will remove the Indemnification clause from all current admission agreements. Current residents or responsible parties will be sent the updated admissions agreement. 4. New admission files will be audited by the Administrator or designee for compliance with the new admissions agreement weekly for 4 weeks. The QAPI committee will determine the need for future audits.