Failure to Properly Explain Binding Arbitration Agreements
Penalty
Summary
The facility failed to ensure that binding arbitration agreements were properly reviewed and explained to residents or their legal representatives in a manner and language they could understand. For three sampled residents, including two who were cognitively intact and one with a legal Power of Attorney (POA) due to severe cognitive impairment, there was no evidence that the arbitration agreement was adequately explained. Residents reported not understanding the nature of the agreement, the rights they were waiving, or the voluntary nature of signing. One resident stated they did not know what an arbitration agreement was and were unaware they were giving up their right to a court proceeding. Another resident did not recall the agreement being explained and signed documents without understanding them. The POA for a severely cognitively impaired resident reported receiving the agreement via email with no explanation or discussion of the rights being waived. Staff interviews revealed inconsistent and incomplete explanations of the arbitration agreement process. The Business Office Manager (BOM) stated that the agreement was provided at admission or within 72 hours and described it as a voluntary legal document, but did not inform residents of the 30-day revocation period or that signing was not a condition of admission. The BOM also did not consistently assess residents' cognitive ability to understand the agreement, relying on basic questions or referring to Social Services if concerns arose. When agreements were sent to family or next of kin, there was no evidence of a thorough explanation or discussion, especially when using electronic signature systems. Further interviews with administrative staff confirmed that residents were told the agreement was voluntary, but staff did not consistently communicate that it was not a requirement for admission, the specific rights being waived, or the 30-day revocation period. When questioned, administrative staff acknowledged that the explanations provided by the BOM were lacking and did not meet expectations. There was no documentation or evidence that residents or their representatives were fully informed about the arbitration agreement in a manner they could understand, leading to the deficiency.