Failure to Properly Complete and Explain Arbitration Agreements
Penalty
Summary
The facility failed to ensure that arbitration agreements were accurately completed and that residents or their representatives were properly informed of their rights regarding these agreements. Specifically, three residents were affected: one resident with intact cognition had an incomplete arbitration agreement lacking a facility staff signature, while two other residents with moderate to severe cognitive impairment had incomplete arbitration agreements with missing resident or representative signatures. The facility did not assess the mental capacity of these residents or provide them with adequate information before presenting the arbitration agreements for signature. Interviews with facility staff confirmed that residents with impaired cognition should not have been asked to sign arbitration agreements, and that the agreements for all three residents were incomplete and therefore invalid. The facility's policy required that arbitration agreements be explained in a manner understandable to the resident or their representative, and that the resident acknowledge understanding of the agreement. These requirements were not met for the sampled residents, as evidenced by incomplete documentation and lack of proper assessment of decision-making capacity.