Failure to Inform Residents of Right to Refuse Arbitration Agreement
Penalty
Summary
The facility failed to ensure that residents and their representatives were explicitly informed of their right to refuse to sign a binding arbitration agreement upon admission. Review of admission paperwork for three residents revealed that the arbitration agreement was presented as part of the electronic admission packet, but there was no option provided to decline the agreement. The electronic system required a signature on the arbitration agreement in order to complete the admission process, effectively removing the choice to refuse. For one resident who was cognitively intact, the admission paperwork included an arbitration agreement that was signed electronically, but the resident later stated he was not aware he had signed such an agreement and would not have done so if given the choice. Another resident, who was severely cognitively impaired, had a responsible party sign the agreement, also without an option to decline. A third resident, with a guardian, had the guardian sign the agreement under the same circumstances. In all cases, the agreement stated it was optional, but the process did not allow for refusal. Interviews with facility staff, including the Admissions Director and the Administrator, confirmed that the electronic admission system did not provide an option to decline the arbitration agreement. Staff acknowledged that the system required the agreement to be signed in order to complete the admission paperwork, and this had been the practice since at least August 2024. This affected multiple residents, as identified in the facility's records.