Many people are now aware that most nursing homes request that the resident or resident's representative sign an Arbitration Agreement upon admission to the facility, which provides the only forum within which to resolve any dispute, including personal injury, is by way of arbitration. Often though, the resident is unaware that signing this agreement is voluntary and is not a pre-requisite to admission to the facility. This misconception comes from story after story of administrative agents for these facilities stating the contrary. They tell residents and family members that this agreement must be signed on order for a bed to be secured at the facility. This practice is not only illegal, but it usually is contrary to the language in the Arbitration Agreement.
Because these Arbitration Agreements have come under judicial scrutiny all over the country, they have evolved and have been re-drafted to include language that is usually clear, unambiguous, and sets forth exactly the time frame the resident has to rescind the agreement (usually 30 days). These newly drafted agreements clearly set forth the rights the resident is waiving by signing the agreement - the right to a jury trial and the right to appeal the arbitrator's decision - and set forth that execution of the agreement is not a precondition to admission to the facility. Further, and most important, the agreement sets forth the time period in which the resident has to rescind the contract after signing it. In most agreements, the resident has up to 30 days from the date he or she signed the agreement to rescind it by providing written notice of same to the facility within the prescribed time period.
Since the resident or their family members may be getting wrong information while several documents are thrust in front of them to sign during the admission process, it is important to slow down, review each document before signing, understand what you are signing, and you do not understand a form or agreement, take it with you to have it reviewed by someone you trust or an attorney. If the facility requires that all documents be signed at one time, consider that a red flag that they are trying to include a form or agreement that is not necessarily in your best interests. Be wary and know what you are signing as it may have significant impact on your legal rights should a dispute or claim arise.
If you have questions regarding an agreement you have been asked to sign or one that you have already signed, please do not hesitate to contact Attorney Susan Bourque.
