Failure to Ensure Resident Understanding of Arbitration Agreements
Penalty
Summary
The facility failed to ensure that residents understood the binding arbitration agreements they signed upon admission. Three residents with intact cognition, as indicated by their BIMS scores of 15, were reviewed and each had electronically signed the facility's Alternative Dispute Resolution Agreement. The agreement stated that residents had been offered or were able to view an audio/visual video explaining the agreement. However, interviews with all three residents revealed that none remembered signing the agreement, none recalled being offered or watching the explanatory video, and none understood the purpose of the agreement at the time of signing. The admissions process involved the Admissions Director presenting the arbitration agreement as part of the admission packet and asking residents to sign electronically, typically without a witness present. The facility's policy required that the agreement be explained in a manner understandable to the resident or their representative. Despite this, the residents interviewed did not recall receiving an explanation or being made aware of their right to refuse the agreement, and one resident expressed a desire to revoke the agreement after learning more about it.