Failure to Ensure Resident Capacity and Proper Signatures for Arbitration Agreements
Penalty
Summary
The facility failed to ensure that residents had the capacity to understand the terms of a binding arbitration agreement and failed to obtain required signatures for such agreements. For one resident with a diagnosis of non-Alzheimer's dementia, hyperlipidemia, and anxiety, the Minimum Data Set (MDS) indicated a Brief Interview for Mental Status (BIMS) score of 6, signifying severe cognitive impairment. Despite this, the resident personally signed a binding arbitration agreement, indicating the facility did not verify the resident's capacity to comprehend the agreement at the time of signing. The admissions director confirmed this lapse during an interview. Additionally, another resident with diagnoses including high blood pressure, weakness, and dementia, and a BIMS score of 14 (cognitively intact), was documented as having entered into a binding arbitration agreement. However, a review of the facility's records showed that the required signature was not obtained for this agreement. The admissions director also confirmed this failure to secure the necessary signature. These findings were based on reviews of facility documents, resident clinical records, and staff interviews.