Failure to Provide Required 30-Day Rescission Period for Arbitration Agreements
Penalty
Summary
The facility failed to ensure that residents or their representatives were informed of their right to rescind a binding arbitration agreement within the federally required 30 calendar days after signing. Instead, the arbitration agreements provided to residents specified only a 21-day period for rescission. This deficiency was identified through a review of the arbitration agreements for four residents, all of whom had signed agreements that did not comply with the 30-day rescission requirement. The facility had a total of 33 residents who had agreed to binding arbitration upon admission, and the census at the time was 57. Interviews with the Admissions Director confirmed that the arbitration agreement in use was last revised in 2021 and that the agreements for the affected residents all stated a 21-day rescission period. Upon review of the relevant regulation, the Admissions Director acknowledged that the agreements should have allowed for a 30-day rescission period, as required. The deficiency was based on direct review of resident records and facility documentation, as well as staff interviews.