Failure to Adequately Explain Arbitration Agreement Prior to Resident Signature
Penalty
Summary
The facility failed to ensure that a resident was provided with an adequate explanation of an arbitration agreement in a form and manner the resident could understand prior to obtaining her signature. A certified nursing assistant (CNA) approached the resident and requested her electronic signature for the arbitration agreement, which was related to a change in facility ownership. When the resident asked for clarification, the CNA only stated that signing meant she could not sue the facility and did not provide further explanation. The CNA also admitted to not having received any education or training from the facility regarding the arbitration agreement or how to explain it to residents. The resident, who had diagnoses including depression, hypertension, and type 2 diabetes, was assessed as having intact memory and full mental capacity at the time of the incident. Documentation confirmed that the resident was alert and oriented, and her medical records indicated she was capable of understanding information presented to her. Despite this, the resident signed the agreement without understanding its contents, as the explanation provided was insufficient. Facility policy required that such agreements be explained in a manner understood by the resident or their representative, but this was not followed in this instance.