Failure to Inform Resident Representatives of Arbitration Agreement Rescission Rights
Penalty
Summary
The facility failed to ensure that Business Office Staff (BOS) were knowledgeable about the residents' and their representatives' rights to rescind a binding arbitration agreement within 30 days of signing. During interviews and record reviews, it was found that the BOS did not inform the resident representatives (RRs) for three sampled residents that they could rescind their signatures on the arbitration agreement. The BOS admitted to not reading the arbitration agreement and was unaware of the 30-day rescission period, as outlined in the facility's own policy and procedure. The sampled residents all had severe cognitive impairments and were dependent on medical interventions such as tracheostomies, ventilators, and gastrostomies. In each case, the arbitration agreement was signed by the RR and the BOS, but there was no documentation or evidence that the RRs were informed of their right to rescind the agreement within the specified timeframe. The facility's policy clearly states that residents or their representatives have 30 days after signing to cancel or rescind the agreement, but this information was not communicated to the RRs by the BOS. Further interviews with the Director of Nursing (DON) and the Administrator (ADM) confirmed that the facility's policy includes a 30-day rescission period and that the BOS was responsible for explaining this to the RRs. However, both the DON and BOS acknowledged gaps in their understanding and communication of the arbitration process, resulting in the RRs not being properly informed of their rights regarding the arbitration agreement.