Failure to Include 30-Day Rescission Right in Arbitration Agreements
Penalty
Summary
The facility failed to ensure that its Binding Arbitration Agreement granted residents and/or their designated representatives the right to rescind the agreement within 30 calendar days of signing, as required by facility policy. This deficiency was identified during a recertification survey, where it was found that three residents or their representatives had signed arbitration agreements that did not include the 30-day rescission period. Specifically, the agreements signed by these individuals lacked explicit language granting the right to rescind within the required timeframe, despite the facility's policy stating this right should be included. Interviews with facility staff revealed that while the policy was updated in October 2024 to include the 30-day rescission period, the actual agreements signed prior to this update did not reflect this change. The Assistant Director for Admissions and the Director of Operations both acknowledged that the right to rescind was explained verbally and included in policy, but not documented in the agreements themselves for those signed before the policy revision. The deficiency was evident for three residents, including those with both intact and moderately impaired cognition, whose agreements did not provide the required rescission period.