Arbitration Agreement Discourages Communication with Authorities
Penalty
Summary
The facility failed to ensure that its arbitration agreement did not contain language that could prohibit or discourage residents or their representatives from communicating with federal, state, or local officials, as well as advocacy agencies such as the State Survey Agency and the Office of the State Long Term Care Ombudsman, regarding the arbitration process or the outcome of an arbitration settlement. Review of the facility's undated arbitration agreement revealed a confidentiality clause stating that neither the facility nor the resident could disclose any details of the legal controversy, dispute, or arbitration process without the consent of the other parties, except for minimal details required in court pleadings. The agreement emphasized confidentiality as a primary goal and stated that violating this provision would cause irreparable harm. An interview with the Administrator confirmed that this language could discourage communication with relevant authorities and advocacy agencies. This deficiency had the potential to affect all 79 residents in the facility, as indicated by the facility census.