Arbitration Agreement Lacks Mutual Selection of Neutral Arbitrator
Penalty
Summary
The facility failed to ensure that its arbitration agreement allowed for the selection of a neutral arbitrator mutually agreed upon by both parties, as required. Record review showed that the agreement specified arbitration would be conducted by the American Health Lawyers Association (AHLA) through its Alternative Dispute Resolution (ADR) service, and if unavailable, the facility would unilaterally select another ADR entity. This process did not provide residents with a choice in the selection of the arbitrator. The agreement was signed by three residents. During interviews, the Admission Coordinator acknowledged that the agreement did not appear to give residents a choice in arbitration, and the Nursing Home Administrator (NHA) indicated unfamiliarity with the agreement and was unable to provide a relevant policy or procedure.