Failure to Inform Resident of Arbitration Agreement Rights
Penalty
Summary
The facility failed to ensure that a resident was properly informed about the terms and rights associated with signing a binding arbitration agreement upon admission. Although the resident was cognitively intact, as indicated by a BIMS score of 15 on the admission MDS, the review of the signed arbitration agreement revealed that it lacked documentation of who reviewed the agreement with the resident. Interviews with the social worker and the nursing home administrator confirmed that neither informed the resident of their right to rescind the agreement within 30 days of signing, nor did they explain that the agreement does not prevent communication with federal, state, or local officials, including surveyors and ombudsmen. Further interviews with the resident and their spouse revealed that the resident was unaware of the right to rescind the agreement or the ability to communicate with regulatory officials despite having signed the document. Both the social worker and the administrator admitted to omitting these critical explanations during their review of the arbitration agreement with residents. The deficiency was confirmed by the administrator, who acknowledged that residents were not informed of these rights in a language they could understand, as required.