Failure to Properly Explain Arbitration Agreements at Admission
Penalty
Summary
The facility failed to accurately explain the admission arbitration agreements to residents or their representatives in a manner that allowed them to understand the content and implications of the agreement. Specifically, 12 out of 12 residents reviewed for arbitration agreements had signed binding arbitration documents without being properly informed of their rights, including the right to refuse to sign and the consequences of signing. The arbitration agreement stated that by signing, residents waived their right to file a lawsuit, have a trial by jury, and seek judicial review, but this information was not clearly communicated to the residents or their representatives. Interviews revealed that the staff member responsible for admissions and explaining arbitration agreements did not inform residents that signing the agreement meant giving up their right to sue or seek their own legal counsel. Instead, the explanation provided was that arbitration was an internal process to resolve issues before escalating them, without clarifying the legal ramifications. One resident interviewed did not recall signing the agreement or being informed about waiving legal rights. The admissions coordinator also admitted to not being aware of the full legal implications stated in the agreement and was unsure how the process was handled before she assumed her role.