Conversations Blog

Arbitration Agreements – ROPs Reminder

The ROPs update last October added new F-tags (F847 & F848) for Arbitration Agreements.

Check your Arbitration Agreements and how your staff are using them to ensure you meet the updated requirements.

F847 – Entering into Binding Arbitration Agreements – Added all new guidance outlining requirements for F847 rights of residents to enter or not enter an agreement

5 key components that the facility must comply with if they offer binding arbitration on or after September 16, 2019:

1. 1. Cannot require the resident/representative to sign the agreement as a condition of admission or requirement to continue receiving care.
   2. The facility must explain the agreement so the resident/representative can understand. The resident/representative must acknowledge that they understand the agreement.
   3. The agreement must clearly state that the resident/representative has the right to rescind the agreement within 30 days.
   4. The agreement must clearly state that the resident/representative is not required to sign the agreement as a condition of admission or as a requirement to continue receiving care.
   5. The agreement may not contain any language to prohibit or discourage anyone including the resident/representative to communicate with federal, state or local officials including Ombudsman.

F848- Select Arbitrator/ Venue, Retention of Agreements

2 key components:

1. 1. The agreement must provide for the selection of a neutral arbitrator agreed upon by the facility and the resident or his or her representative and the selection of a venue that is convenient to both parties.
   2. The facility must retain a copy of the signed agreement for binding arbitration and the arbitrator’s final decision for 5 years after the facility and the resident or his or her representative resolved a dispute through arbitration.

Tips to avoid Legal Issues:

• Involve your legal counsel in crafting your Arbitration Agreement.
• Document the cognitive capacity of the resident at time of admission.
• AHCA Webinar on Arbitration Agreements