Originally from Dispute Resolution Journal

Arbitration and mediation (ADR) have become the forum of choice for major healthcare business disputes. These disputes are domestic and worldwide, and may involve millions of dollars. Disputes over healthcare issues extend far beyond traditional lawsuits between patients and physicians. Most of the claims are contractual and are not covered by insurance. Chief executive officers and general counsel of large and small companies and medical practices dictate the strategy of the case. While some cases are filed in state or federal court and then diverted to court-annexed ADR, most disputes between healthcare providers and payors do not enter the courtroom. Many of the contracts between these parties contain a mandatory arbitration clause. Some contain a two-step mediation/arbitration process. Parties involved in payor-provider disputes in clude health systems, hospitals, physicians and their medical groups, insurance carriers, practice management and billing companies, managed care plans, laboratories, large and small pharmaceutical companies, durable medical equipment companies, contract research organizations, nursing homes, assisted-living and residential care facilities.