Failure to Ensure Resident Understanding and Proper Execution of Arbitration Agreement
Penalty
Summary
The facility failed to ensure that a resident or their representative understood the binding arbitration agreement at the time of signing. Specifically, the arbitration agreement provided to residents did not include information clarifying that signing the agreement does not prevent residents or their representatives from communicating with federal, state, or local officials, such as surveyors or ombudsmen. Review of the agreement and interviews with facility staff confirmed that this information was omitted, and the facility did not ensure that residents or their representatives acknowledged understanding of the agreement as required by regulation. For one resident, who had a court-appointed guardian due to lacking capacity to make or communicate responsible decisions, the facility allowed the resident herself to sign the arbitration agreement. Clinical records confirmed the existence of the guardianship, and staff interviews verified that the guardianship was still in effect. An interview with the resident revealed she did not know what an arbitration agreement was or that she had signed one, indicating she did not understand the document. This demonstrates the facility's failure to ensure the agreement was explained in a manner the resident or her representative could understand and that the appropriate party signed the agreement.