Failure to Properly Inform Residents of Binding Arbitration Agreement
Penalty
Summary
The facility failed to ensure that residents were fully informed and understood the binding arbitration agreement, as required. The facility's Patient and Facility Arbitration Agreement stated that by signing, parties waive their constitutional right to have claims decided in court before a judge and jury. Interviews revealed that all residents had signed the agreement, and the Medical Records Director was responsible for explaining it upon admission. However, the explanation provided to residents was incorrect, as it included information that residents could still go to court if their rights were violated, which contradicts the terms of the binding arbitration agreement. The Administrator acknowledged that the facility was not providing correct information regarding the agreement.