Failure to Properly Inform Residents and Representatives of Binding Arbitration Agreements
Penalty
Summary
The facility failed to ensure that binding arbitration agreements were properly reviewed and explained to residents or their representatives, resulting in a lack of understanding about the agreements' terms and implications. For three residents, either the resident or their representative signed the arbitration agreement without being explicitly informed that they were waiving their right to litigation in a court proceeding. Interviews revealed that these individuals did not recall being told about their right to refuse or withdraw from the agreement, nor did they understand the arbitration process or the legal consequences of signing. One resident, who had recently been hospitalized for sepsis and was recovering from a urinary tract infection with a history of hallucinations, expressed uncertainty about their mental acuity at the time of signing. Another resident's POA and a responsible party for a third resident both stated they did not understand what they had signed, with one indicating they were in a distressed state due to a family member's critical illness. Staff interviews indicated that the business office manager provided explanations that were inconsistent with the actual terms of the arbitration agreement, suggesting that residents could still go to court after arbitration, which was inaccurate. The administrator acknowledged that the expectation was for staff to explain the agreements in an understandable way, but admitted that this was not achieved, as evidenced by the residents' and representatives' lack of understanding. There was no documentation or evidence that the agreements were explained in a manner accommodating the needs of the residents or their representatives, nor that their consent was fully informed.