Originally from Dispute Resolution Journal

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ARBITRATION’S KEY ROLE IN RESOLVING
EMPLOYMENT-RELATED
HEALTH CARE DISPUTES
Alan D. Lash1

As the saying goes, “what’s old is new again.” The adage is
particularly apropos to employment relationships in the health care
industry. In the 1990s, the acquisition of medical practices and the
employment and management of physicians was all the rage. That is,
until several high profile deals went bust and employers began
divesting acquired physician practices, terminating employed
physicians, and abandoning the physician practice management
business altogether at alarming rates.2

Now, fueled by declines in physician reimbursement, increases in
practice costs, and new laws fostering new alignment strategies, the
acquisition of medical practices and employment of physicians has
experienced an extraordinary rebirth. As they did before, these
employment relationships and arrangements will likely lead to
disagreements and disputes between the parties. This article explores14
the unique role alternative dispute resolution (ADR), and arbitration
in particular, is expected to play in the resolution of inevitable
employment disputes in the health care industry.

I. THE RESURGENCE OF THE EMPLOYED PHYSICIAN