Failure to Inform Residents of Arbitration Agreement Rights
Penalty
Summary
The facility failed to ensure that residents and their representatives were properly informed about the voluntary nature of binding arbitration agreements and their right to refuse or rescind such agreements within 30 days of signing. Review of the facility's arbitration and mediation agreement forms revealed that they did not include required language stating that signing was optional, not a condition of admission, and that residents or their representatives had the right to rescind the agreement within 30 days. This deficiency was identified for five residents, whose signed agreements lacked the necessary verbiage. Additionally, several residents interviewed did not recall being informed about arbitration or signing the agreements, indicating a lack of clear communication during the admissions process. Interviews with staff revealed that the admissions coordinator was unaware of the 30-day rescission right and that the arbitration agreement was presented as part of a large packet of admission documents, which may have contributed to residents' lack of understanding. The administrator acknowledged that while the facility understood the voluntary nature of the agreement, the documentation and explanation provided to residents and their representatives did not consistently meet regulatory requirements. The failure to provide clear, required information about arbitration agreements was observed in both the documentation and the admissions process.