Originally from:

Journal of American Arbitration (JAA) - Vol. 2, No. 2

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ARTICLES

PacifiCare Health Systems, Inc. v. Book:
United States Supreme Court Compels
Arbitration of RICO Claims, Although
Arbitrator Authority May Be Limited
By S. Stephen Yau

I. OVERVIEW
A group of physicians filed suit against several managed-health-care
organizations (HMOs) which had failed to reimburse the physicians for
medical services they provided to patients covered by the organizations’
plans.1 These physicians brought causes of action under the Racketeer
Influenced and Corrupt Organizations Act (RICO),2 the Employee
Retirement Income Security Act of 1974 (ERISA),3 a federal Medicare
prompt-pay regulation,4 and various State prompt-pay statutes, as well as
claims for breach of contract, unjust enrichment, and in quantum
meruit.5 The defendants responded by moving to compel certain