Failure to Properly Explain Arbitration Agreement and Inform Residents of Rights
Penalty
Summary
The facility failed to properly explain the Arbitration Agreement to two residents, both of whom had moderately impaired memory and cognition as documented in their Minimum Data Set assessments. One resident was asked to sign the agreement during a physical therapy session without any explanation or opportunity to read the document, and was not informed of the right to refuse or rescind the agreement. The resident later expressed concern about potentially giving up the right to present disputes in court and stated a desire to discuss the agreement with family before signing. Another resident was approached by two staff members and asked to sign the Arbitration Agreement without any explanation of its contents, being told only that it was "not something bad." The resident was unaware of the right to refuse to sign or to rescind the agreement, and the date on the form was entered by someone else without the resident's knowledge. Both residents' agreements were backdated by the Director of Admission due to missing electronic records, and the Director admitted to not providing a proper explanation or being aware of the residents' right to rescind. Interviews with staff revealed a lack of understanding regarding the Arbitration Agreement and the residents' rights associated with it. The facility's policy requires that the agreement be explained in a manner understandable to the resident or representative, explicitly inform them of their right not to sign, and grant the right to rescind within 30 days. These requirements were not met, resulting in a violation of the residents' rights to make informed decisions about their care.