Failure to Properly Explain Arbitration Agreement and Resident Rights
Penalty
Summary
The facility failed to adequately explain the binding arbitration agreement (ADR) to residents or their representatives, including the right to refuse to sign and the right to cancel the agreement within 30 days, as required. For three residents reviewed, all of whom were cognitively intact and required varying levels of assistance with activities of daily living, the ADR was either not explained in detail, not presented as optional, or the residents were unaware of their right to cancel within 30 days. One resident reported feeling that signing the ADR was a condition of admission, while another stated they were not told about the cancellation option, and a third was unaware they had signed the ADR at all. Staff interviews revealed inconsistencies in the admissions process. The Admissions Director stated that all forms, including the ADR, were reviewed with residents or their representatives, and that the option to not sign and the cancellation period were explained. However, another staff member involved in admissions indicated they explained the ADR as a way to use arbitration instead of litigation, but only mentioned a 30-day cancellation period in relation to admission paperwork, not specifically the ADR. The Administrator confirmed the ADR was not a condition of admission and that staff had been trained on the process, but was unsure why residents felt the ADR was not explained.