Failure to Inform Resident Representatives of Arbitration Agreement Rights
Penalty
Summary
The facility failed to ensure that resident representatives were properly informed about binding arbitration agreements and their right to refuse such agreements. For two residents, one with Alzheimer's disease, non-Alzheimer's dementia, and anxiety disorder, and another with non-Alzheimer's dementia, cerebrovascular accident, and seizure disorder, the responsible parties were not provided with an explanation of the arbitration agreement. In both cases, the residents signed the arbitration agreements before responsible parties were designated, and the agreements were not subsequently reviewed with those responsible parties. Interviews with the facility's social worker confirmed that the arbitration agreements were not discussed with the responsible parties after their designation. Review of the facility's policy indicated that the facility is required to explicitly inform residents or their representatives of their right not to sign the agreement, explain the agreement in an understandable manner, ensure acknowledgment of understanding, and grant the right to rescind within 30 days. These steps were not followed for the two residents in question.