Originally from Dispute Resolution Journal

Health care alternative dispute resolution (ADR) and enterprise liability keep surfacing as key elements of health care reform.l Under the enterprise liability theory, responsibility and liability for medical malpractice shifts from the individual physician to the health maintenance organization (HMO) and effectively provides immunity to individual providers from medical malpractice actions. Physicians are not named as defendants in malpractice suits with enterprise liability but assume the limited role of fact witnesses. The HMO becomes legally accountable for the actions of its physicians and becomes more responsible for the quality of its patient care.2 With the expanding role of HMOs in the delivery of health care in the United States, the benefits of enterprise liability will also increase, especially if an improved mechanism for resolving health care disputes through alternative dispute resolution (ADR) can be developed.3