Failure to Clearly Explain Binding Arbitration Agreements to Residents
Penalty
Summary
The facility failed to ensure that staff had a clear understanding of the Binding Arbitration agreement and did not provide residents with a clear explanation of the agreement prior to signing. During interviews, the Admission Coordinator stated that she was responsible for reviewing the admission contract, which included the Binding Arbitration agreement, but admitted she did not inform residents that they could only rescind the agreement within the first 30 days or that signing the agreement would waive their right to a trial in court. The review of the facility's arbitration agreement document confirmed that it included language about waiving the right to a trial and the process for rescinding the agreement, but this information was not consistently communicated to residents. Two residents who were cognitively intact, as confirmed by their Minimum Data Set (MDS) assessments, were found to have signed or verbally consented to the arbitration agreement without understanding its implications. One resident's record showed only a verbal consent with no date or representative identified, and the resident later stated he did not know what the agreement was. The other resident signed the agreement but reported not knowing what it entailed and stated she would not have signed if she had known it meant waiving her right to go to court. Both residents had significant medical histories, including heart disease, kidney disease, and other conditions, at the time of admission.