Failure to Ensure Cognitively Impaired Resident Understood Arbitration Agreement
Penalty
Summary
The facility failed to ensure that a resident was properly informed about a binding arbitration agreement in a manner the resident could understand prior to signing. Medical record review showed that the resident was admitted with multiple diagnoses, including severe cognitive impairment as evidenced by a Brief Interview for Mental Status (BIMS) score of 03. Despite this, the resident was allowed to sign the arbitration agreement without documented evidence that the agreement was explained in an understandable way or that a legally authorized representative was involved in the process. Further review revealed that the Admissions Coordinator attempted to contact the resident's family and Power of Attorney at the time of admission but was unable to reach them. Acknowledging the resident's cognitive impairment, the Admissions Coordinator still permitted the resident to sign the arbitration agreement. The agreement itself stated that the parties understood and voluntarily entered into arbitration, but there was no indication that the resident, given their cognitive status, could comprehend the agreement at the time of signing.