Failure to Ensure Resident Capacity for Binding Arbitration Agreements
Penalty
Summary
The facility failed to ensure that residents had the capacity to understand the terms of a binding arbitration agreement prior to signing. Specifically, two residents were identified as having signed such agreements despite documented severe cognitive impairment. For one resident, the clinical record showed a diagnosis of dementia and a Brief Interview for Mental Status (BIMS) score of six, indicating severe impairment, at the time the agreement was signed. For the second resident, the record also showed a diagnosis of dementia and a BIMS score of three, again indicating severe impairment, at the time of signing. These findings were confirmed through review of facility documents, resident clinical records, and staff interviews. The Nursing Home Administrator acknowledged that the facility did not ensure these residents had the capacity to understand the binding arbitration agreements they signed. The deficiency was cited under 28 Pa. Code: 201.18(e)(1) Management.