Failure to Clearly Explain Arbitration Agreement to Residents
Penalty
Summary
The facility failed to ensure that residents understood the binding arbitration agreement in a manner that was simple and clear. Three residents with intact cognition, as evidenced by their BIMS scores, signed the arbitration agreement during admission but later reported that the agreement was not explained to them or that they did not recall signing it. Interviews with these residents revealed that they would not have signed the agreement if it had been properly explained. The arbitration agreement itself stated that by signing, residents waived their right to a jury trial for any disputes, but this critical information was not communicated in an understandable way to the residents. Further interviews with the Admissions Director confirmed that she did not explain to residents, in language they could understand, that signing the agreement meant waiving their right to take the facility to court. This lack of explanation directly contributed to the residents' lack of understanding regarding the arbitration agreement, resulting in the deficiency identified during the survey.