Failure to Properly Explain and Obtain Informed Consent for Binding Arbitration Agreements
Summary
The facility failed to ensure that its Binding Arbitration Agreement (BAA) was explained to residents in a manner they could understand, and did not inform residents or their representatives of their right to rescind the agreement within 30 days. This was identified through record review, interviews, and policy review, and affected three residents out of a sample of 31. The facility's policy required that the terms and conditions of the BAA be explained in a way that ensures understanding, taking into account language, literacy, and cognitive status, and that a signature alone is not sufficient to demonstrate understanding. For the three residents involved, documentation showed that two had moderate cognitive impairment and one had severe cognitive impairment at the time they signed the BAA without a representative. Specifically, one resident had a BIMS score of nine, another had a BIMS score of ten, and the third had severe cognitive impairment with no BIMS score recorded. Interviews revealed that at least one resident did not recall signing the BAA or having it explained, and another was unable to verbalize or demonstrate understanding of the agreement. The Director of Admissions stated that she used BIMS scores to determine capacity, but admitted to not knowing the required rescission period and was unable to fully explain the BAA contents. The facility's BAA documentation included a section stating that the agreement had been explained in a form and manner the resident understood, but interviews and record reviews indicated this was not consistently the case. The Director of Admissions also stated that residents were sometimes asked to sign the BAA more than once, as directed by corporate policy, and that she considered residents with a BIMS of 12 or lower as incapable of understanding the agreement, yet residents with lower scores still signed without a representative. The Administrator was also unclear about the terms of the BAA, including its duration.
Penalty
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A facility arbitration agreement stated that a resident was not required to sign to be admitted or continue care, but it required rescission within 30 days by signed written letter only. The SSD said she explained the agreement before admission and confirmed that verbal withdrawal was not allowed, meaning residents or representatives could only retract consent in writing.
A resident with Parkinson's disease, dementia, anxiety, and DM had moderately impaired cognition and could not make medical decisions. The facility's admission coordinator said the resident's RP signed a binding arbitration agreement, but the RP stated he never signed it and had never been told about it. Staff also acknowledged the agreement should be explained before signing, and the facility policy required it to be explained in language the resident or RP could understand.
Binding arbitration agreements were not clearly communicated in a form and manner understood by a resident before signing. A resident with intact cognition, dementia, moderate vision impairment, and a need for help reading written materials signed an undated arbitration agreement, but later stated he would not have signed it and could not read or write. Staff described limited training and inconsistent explanations of the agreement, and the facility document lacked evidence that the resident or representative understood the terms or that the agreement was explained in a language they understood.
Failure to Properly Explain Arbitration Agreements: The facility did not inform 4 of 4 reviewed residents or their representatives that signing an arbitration agreement was not required for admission or continued care, and did not explain the agreement in a way they could understand. Two residents had moderate cognitive impairment, one resident on the dementia unit later said she did not know what an arbitration agreement was, and another resident stated he did not understand the term and spoke a primary language other than English. A staff member said she briefly described the form as a litigation question and did not provide any other details.
Arbitration Agreement Signed by Resident Without Capacity: A resident with legal blindness, cognitive impairment, and no capacity to make decisions signed an arbitration agreement even though a Family Member was the responsible party. The AC stated the form should have been reviewed and signed by the responsible party, and facility policy required the arbitration offer to be explained in a language and manner the resident or legal representative could understand.
A facility failed to follow its BAA policy for three residents whose primary language was Spanish. Admission staff presented English-language arbitration forms, and there was no documentation that the agreements were explained in Spanish or that the residents acknowledged understanding them. Two residents with intact cognition and one resident with moderately impaired cognition stated they signed the forms without understanding what they were signing.
Arbitration Agreement Did Not Allow Verbal Rescission
Penalty
Summary
The facility failed to ensure arbitration agreements were implemented in a manner that protected resident rights. An agreement titled ARBITRATION AGREEMENT AND WAIVER OF JURY TRIAL stated that residents were not required to sign the agreement to be admitted or continue receiving care, but it also required any rescission to be made by sending a signed written letter to the facility within the first 30 days after signing. During interview, the Social Service Director stated that her role was to explain the arbitration agreement to residents and families before admission, and that after signing, a resident or representative had 30 days to retract consent only by submitting a written request. She confirmed that the agreement did not allow verbal withdrawal from the agreement.
Arbitration Agreement Not Clearly Explained to Resident Representative
Penalty
Summary
The facility failed to ensure the terms and conditions of a binding arbitration agreement were clearly explained to the resident or the resident representative for one sampled resident. Resident 90 was initially admitted on 9/2/2024 and later readmitted with diagnoses including Parkinson's disease, unspecified dementia, anxiety disorder, and diabetes mellitus. The resident's MDS dated 6/12/2026 indicated moderately impaired cognitive skills, and a physician progress note dated 5/13/2026 stated the resident could make needs known but could not make medical decisions; the note identified FM1 as the responsible party. During interviews, FM1 stated he never signed an arbitration agreement for Resident 90 and had never been told about it, despite stating he was responsible for signing all forms and consents for the resident. The admission coordinator stated FM1 signed the arbitration agreement on 3/20/2026 and acknowledged she could not remember whether she had spoken directly with FM1 about the form. The coordinator stated the arbitration form should be explained to the resident or representative before signing, and the QA nurse stated the purpose and context of the agreement should be discussed so the resident or representative understands the terms and effect of signing. The facility policy stated the agreement would be explained in a manner and language the resident and representative understand, and that if the resident lacked decision-making capacity, the resident representative would decide whether to sign or decline.
Binding Arbitration Agreement Not Clearly Explained
Penalty
Summary
The facility failed to ensure a binding arbitration agreement was clearly communicated in a form and manner understood by a resident prior to signing. Resident R43’s admission MDS indicated intact cognition, diagnoses of non-Alzheimer’s dementia, moderate vision impairment, and a need for someone to help read written materials. Exhibit H, the undated Binding Arbitration Agreement, contained R43’s signature. During interview, R43 stated he would not have signed a binding arbitration agreement, said legal issues at the time of admission would have prevented him from signing, and stated he was not able to read or write and would therefore require assistance. During interviews, social services staff stated he completed the binding arbitration with R43 and explained it as a legal form that would speed up the process if residents brought the facility to court, while stating he would not have told residents they were giving up any rights. He also stated he had limited training on binding arbitration and had been responsible for all such agreements until they were transferred to the admission coordinator on 5/1/26. The admission coordinator stated she presented binding arbitration upon admission and would stop and discuss it with family if a resident did not understand. The Administrator stated all binding arbitration agreements were grandfathered in. A facility document titled Explanation of Arbitration Agreement Language to Family and Resident/Patient stated arbitration does not occur in a court, but it lacked indication that the agreement was explained in a form and manner the resident or representative understood, including in a language they understood, and lacked resident or representative acknowledgement of understanding.
Failure to Properly Explain Arbitration Agreements
Penalty
Summary
The facility failed to inform residents or their representatives of the right not to sign a binding arbitration agreement as a condition of admission or continued care, and failed to explain the agreement in a manner they could understand, including in a language they understood, for 4 of 4 residents reviewed. R25 was admitted to the dementia unit, had a Brief Interview for Mental Status showing a memory problem and moderate impairment in decision-making, and her arbitration contract was signed by her; however, when interviewed later she stated she did not know what an arbitration agreement was and said she never agreed to arbitration. R83 was also moderately cognitively impaired, had an arbitration contract signed by himself, and later stated he did not know what arbitration meant and that his primary language is Tajlogy (Philippines).
Arbitration Agreement Signed by Resident Without Capacity
Penalty
Summary
The facility failed to ensure the Arbitration Agreement form was not signed by Resident 1, who had a responsible party, was not self-responsible, had cognitive impairment, did not have the capacity to understand and make decisions, and was legally blind. Resident 1’s admission record showed diagnoses including legal blindness, chronic kidney disease, benign prostatic hyperplasia, and hypertension, and identified a Family Member as the responsible party. The History and Physical dated 2/27/2026 stated Resident 1 did not have the capacity to understand and make decisions, and the MDS dated 3/18/2026 indicated moderately impaired cognitive skills and dependence on staff with ADLs. The Arbitration Agreement form dated 7/9/2024 showed Resident 1 signed the form. During interview, the admission Coordinator stated she was responsible for explaining the Arbitration Agreement to residents and/or responsible parties, and that if a resident was not self-responsible, the form should have been reviewed and signed by the responsible party. She stated Resident 1’s responsible party should have signed the form, and that the risk of having Resident 1 sign it could result in the Family Member taking legal action against the facility. The facility policy stated the arbitration offered to residents or their responsible parties should be explained in a language and manner they understand and provide opportunities for questions, and that the resident or legal representative may accept or decline the agreement.
Binding Arbitration Agreements Not Explained in Residents’ Primary Language
Penalty
Summary
The facility failed to follow its Binding Arbitration Agreement policy for three sampled residents when admission staff did not provide documentation and explanation of the agreement in the residents’ primary language. Resident 32, Resident 41, and Resident 80 each had a BAA written in English, and the admission coordinator stated there was no documentation showing the agreement was explained in Spanish for any of them. Each resident stated Spanish was their primary language, and each reported signing the English form without understanding it or without recall of the explanation. Resident 32’s admission record identified Spanish as the primary language, and the MDS showed a BIMS score of 8, indicating moderately impaired cognition. Resident 41’s admission record also identified Spanish as the primary language, and the MDS showed a BIMS score of 14, indicating intact cognition. Resident 80’s admission record identified Spanish as the primary language, and the MDS showed a BIMS score of 14. The facility policy stated the arbitration agreement must be explained in a form and manner the resident understands, including in a language the resident understands, and that the resident or representative must acknowledge understanding.
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