Arbitration Agreement Lacked Required Rescission and Non-Condition of Admission Language
Penalty
Summary
The facility failed to ensure its arbitration agreement informed residents or their representatives of their right to rescind the agreement within 30 days of signing and that signing the agreement was not a condition of admission. With a census of 22 residents, all 22 had signed arbitration agreements, and there were no residents in active arbitration. Review of the admission packet showed that Exhibit E, titled Arbitration Provision, did not contain language notifying residents or representatives of the 30-day rescission right or that the arbitration agreement was optional and not required for admission. During interviews, an administrative staff member stated that the Arbitration Provision in the admission packet was the only information provided about the agreement and that she verbally explained it to new admissions when they signed, but there was no indication that the required language was included in writing. Another administrative nurse reported that the previous company had written the Arbitration Provision and that the current board and administrator might have modified it, and she was not aware of the specific language required to be included. A separate administrative staff member also stated they followed whatever the admission agreement said about the Arbitration Provision and acknowledged not being aware of the required elements of the provision. These findings demonstrate that the facility’s written arbitration documents, as provided to all residents at admission, lacked the federally required notifications regarding the right to rescind within 30 days and the non-mandatory nature of signing the arbitration agreement for admission, and that key administrative personnel were unaware of these specific regulatory requirements.
