Failure to Properly Explain Arbitration Agreement and Right to Rescind
Penalty
Summary
The facility failed to fully explain the binding arbitration agreement to residents or their representatives, including the right to rescind the agreement within 30 calendar days, and did not ensure the explanation was provided in a manner and language the residents understood. Four residents, all with intact cognition and varying levels of dependence for activities of daily living, signed the arbitration agreement without being informed that it was optional or that they had the right to cancel it within the specified period. During a Resident Council meeting, three residents stated they were not told the agreement was optional, and one did not recall signing the document. None of the four residents were informed of their right to rescind the agreement. Interviews with facility staff revealed gaps in knowledge and training regarding the arbitration agreement. The nursing assistant responsible for admission paperwork stated they did not inform residents about the right to rescind and were unaware of this option. The Health Information Director also did not know if residents could cancel the agreement after signing. The administrator confirmed that the admissions coordinator was trained by the regional director, but the deficiency persisted, as evidenced by the lack of proper explanation and documentation for the residents involved.