Failure to Ensure Residents Understand Binding Arbitration Agreements
Penalty
Summary
The facility failed to ensure that three residents and their representatives fully understood the Binding Arbitration Agreement during the admission process. Interviews revealed that one family representative did not remember signing the agreement and was unaware of its contents, citing the overwhelming number of admission forms. Another resident stated she signed all admission papers but did not recall any discussion about the arbitration agreement and was unfamiliar with its details, indicating she would not have signed if she had known it waived her right to a traditional court trial. A third resident also did not remember signing the agreement or understanding its purpose, expressing indifference due to not having issues with the facility at the time. A staff interview with the Business Office Manager confirmed that the facility follows its policy regarding arbitration agreements during admissions. Review of the facility's policy indicated that residents and their representatives should be informed of the nature and implications of the agreement, including their right to refuse without affecting admission or continued care. The policy also requires that the agreement be explained in a manner and language the resident or representative understands, and that acknowledgment of understanding is obtained. Despite these policy requirements, the sampled residents and representative did not demonstrate understanding of the agreement, leading to the deficiency.