Failure to Ensure Residents' Informed Choice Regarding Arbitration Agreements
Penalty
Summary
The facility failed to ensure that residents or their representatives were properly informed about the binding arbitration agreement, including their right to refuse to sign and that signing was not a condition of admission or continued care. Record reviews and interviews revealed that three residents with intact cognition signed the arbitration agreement as part of their admission paperwork. However, these residents either did not recall being informed that the agreement was optional or were unsure if the documents were mandatory. One resident specifically stated not being in the right frame of mind at the time of signing due to illness, and another was uncertain if the documents were optional. Interviews with the admissions staff indicated that while they verbally explained the arbitration agreement and stated it was not required, the agreement itself did not clearly indicate that signing was optional or that residents could still contact state personnel. Additionally, the admissions staff and the Nursing Home Administrator were unable to locate a policy or procedure regarding the signing of the arbitration agreement, and the NHA had not reviewed the agreement. This lack of clear documentation and policy contributed to the deficiency in ensuring residents' informed choice regarding arbitration agreements.