Failure to Adequately Explain Arbitration Agreements to Residents
Penalty
Summary
The facility failed to ensure that binding arbitration agreements were explained in a manner that could be understood by residents or their representatives. Interviews with the nursing home administrator and admissions director confirmed that while the arbitration agreement was presented and residents were told it was not required for admission, several cognitively intact residents who had signed the agreement were unable to explain or recall what the arbitration agreement was. Specifically, three residents with high BIMS scores, indicating cognitive intactness, could not describe or remember the arbitration agreement they signed, and one stated it was not explained to her. Additionally, during a resident council meeting, all six residents in attendance reported not understanding the arbitration process or what the agreement meant. One resident expressed that the volume of information provided during admission made it difficult to remember what was signed, and another cited a lack of trust. The findings indicate that the facility did not adequately ensure residents or their representatives were informed about the arbitration agreement or their right to refuse, resulting in a lack of understanding among those who signed.