Failure to Ensure Understanding of Binding Arbitration Agreements
Penalty
Summary
The facility failed to follow its own policies and procedures regarding the explanation and execution of Binding Arbitration Agreements (BAA) for two residents. In the first instance, the Admission Coordinator (AC) had a resident with a diagnosis of dementia and a Brief Interview for Mental Status (BIMS) score indicating moderate cognitive impairment sign a BAA. The AC relied on basic questions and a review of nursing notes and diagnoses to determine the resident's understanding but did not identify documented episodes of confusion or the dementia diagnosis. The resident was considered their own responsible party, but the documentation showed cognitive impairment and confusion, raising concerns about the resident's ability to fully comprehend the legal implications of the BAA they signed. In the second instance, the AC had another resident sign a BAA even though the resident's admission record indicated that their son was the responsible party and that the resident's spoken language was not English. The AC did not document the use of a translator, and the responsible party did not sign the BAA. The facility's policies require that residents or their representatives be informed of the nature and implications of binding arbitration agreements in a manner they can understand, and that language access services be provided for individuals with limited English proficiency. These requirements were not met in either case, resulting in the residents not fully understanding the legal documents they signed.