Failure to Properly Inform Residents of Arbitration Agreement Rights
Penalty
Summary
The facility failed to ensure that residents and their representatives were properly informed about the binding arbitration agreement, specifically regarding their right to refuse to sign and the 30-day window to rescind the agreement after signing. In two reviewed cases, one resident was unable to articulate any understanding of the arbitration agreement or recall being informed about it, despite having signed the document. The other resident misunderstood the terms, believing she could rescind the agreement at any time, which was also incorrectly communicated by the Admissions Coordinator and the Nursing Home Administrator. Both staff members were unaware of the specific 30-day rescission period, and the facility's policy did not address the process for signing or the rescission window. The arbitration agreement itself did include language about the 30-day rescission period, but this information was not effectively communicated to the residents. Interviews with the residents and staff revealed a lack of understanding and incorrect explanations regarding the agreement and the time frame for rescinding it. The admissions process included the arbitration agreement as part of a lengthy contract, and staff routinely presented the agreement as something that could be changed at any time, contrary to the actual terms. This resulted in residents signing agreements without full comprehension of their rights or the specific time limits involved.