Failure to Ensure Informed Consent for Binding Arbitration Agreements
Penalty
Summary
The deficiency involves the facility’s failure to ensure residents’ rights to make informed decisions regarding a binding arbitration agreement at admission. The facility’s admission packet included an “Alternative Dispute Resolution Agreement Between Resident and Facility” stating that, with the exception of payment disputes, all other disputes are governed by the agreement and that binding arbitration waives the right to a court trial, jury trial, trial by judge, and most appeals. For two residents, all admission documents, including this arbitration agreement, were signed by the residents themselves despite significant cognitive impairment documented at the time of admission. One resident was admitted with an admission assessment indicating alert and oriented to person only, a baseline care plan noting the resident could not communicate easily with staff and had cognitive needs, and a BIMS score of 3, indicating severe cognitive impairment. Another resident was admitted with an admission assessment also indicating alert and oriented to person only, a baseline care plan describing the resident as very confused, agitated, and yelling out, and a BIMS score of 2, also indicating severe cognitive impairment. In both cases, the residents personally signed the arbitration agreement, and there is no indication in the report that a representative was involved or that the agreement was explained in a form and manner the residents could understand. During interview, the Nursing Home Administrator and DON confirmed the facility failed to ensure residents understood the conditions of the binding arbitration agreement and that it was explained in a way, and in a language, they could understand for two of five sampled residents.
