Alabama Supreme Court Rules Nursing Home Cannot Enforce Agreement Without Legal Authority to Represent Resident

Must a skilled nursing facility carefully evaluate documentation allegedly supporting a family member’s authority to represent a resident?

Compliance Perspective – Legal Authority

Policies and Procedures: The Compliance and Ethics Officer with the Admissions Director will review policies and procedures requiring a representative to provide proper documentation supporting the authority to make decisions on behalf of a resident. Training: Staff will be trained on the various forms of delegated authority, including, but not limited to, guardianship, power of attorney, and state approved healthcare proxies. Auditing: Periodically, a review is needed to ensure that policies, procedures and training are updated, and that all employees have been trained.

The Alabama Supreme Court recently reversed a lower court’s decision compelling arbitration to be used in a wrongful death suit against a nursing home. The reasoning behind the decision was that the resident of the nursing home was not mentally capable of giving his daughter legal authority over his care. The daughter had signed the arbitration agreement on his behalf.

Under Alabama case law, a nursing home resident must be considered mentally competent when conferring/signing an agreement to give such legal authority.

The daughter, as her father’s estate administrator, has accused the nursing and rehabilitation center of causing his death. The 79-year-old resident with dementia was admitted into the facility to recover from hip surgery. The wrongful death suit claims that the facility was responsible for his death due to sepsis. There were no details regarding the alleged negligence provided in the court’s 8-1 ruling.