Arbitration Agreement Lacks Required Information on Neutral Arbitrator and Venue
Penalty
Summary
The facility failed to ensure that its arbitration agreement, as signed by a resident, included information regarding the use of a neutral arbitrator and the selection of a venue convenient to both parties, as required by federal regulations and the facility's own policy. During review, it was found that the arbitration agreement signed by a resident did not contain these provisions. The Resident Ambassador, who explained the agreement to the resident, stated that she only read what was included in the document and did not provide information about a neutral arbitrator or convenient venue, as this information was not present in the form and she was unaware it was necessary. The Admissions Director confirmed that the facility had recently adopted a shortened version of the arbitration agreement and was not aware that it needed to include language about a neutral arbitrator and convenient venue. The facility's policy indicated that the arbitration agreement should comply with federal and state laws, and that the administrator or designee is responsible for ensuring the use of the latest compliant version. This omission resulted in an incomplete understanding of the arbitration agreement for the resident involved.