Originally from Dispute Resolution Journal

The environment in which hospitals, health systems and other institutional healthcare providers operate is exceedingly sophisticated and complex. Institutional healthcare providers participate in a myriad of contractual relationships, many of which are new and subject to multiple levels of regulatory oversight and review. As with other businesses, there is the all too real possibility that disputes may later arise between healthcare entities that are parties to a contractual arrangement. One of the key questions faced by healthcare providers is whether alternative dispute resolution (ADR) provides the best forum for resolving any future disagreements. While arbitration is commonly used to resolve many types of business disputes, even becoming the norm, the answer to this question in the healthcare arena is largely dependent on several factors that healthcare providers should evaluate when considering inclusion of an arbitration clause in their commercial contracts. These factors are discussed below from the viewpoint of a healthcare litigator.

The article also explores some of the benefits and disadvantages of using arbitration to resolve commercial healthcare disputes and recent developments and trends, and it concludes with practical guidance. The main focus is on business disputes in healthcare, rather than disputes involving medical consumers.