For many years, the Cooperative of American Physicians has supported arbitration as an alternative means for resolving disputes brought by patients over medical care.
The benefits to individual members of having such disputes decided in arbitration have included predictable arbitration schedules, private proceedings, and experienced professionals as the fact-finders. Another benefit shared by the membership as a whole has been cost savings in arbitration over the life of a litigated claim. The transformation of arbitration into a complex industry of its own, however, appears to have changed the dynamics with regard to its effectiveness.
CAP has previously shared with members our observation that while the result of any particular case will always depend on the medical facts, juries have awarded defense verdicts at a higher percentage rate than have arbitrators. Contrary to the early days of arbitration, we now customarily see trial dates scheduled earlier in the life of claims proceeding in the court system compared to their arbitration counterparts. More recently, CAP has also noticed that savings in overall costs of arbitration versus the court system can no longer be counted on.
The erosion in the benefits of arbitration coincides with what CAP perceives as improvements in the superior court system. The advent of “one-day or one-trial” jury-service rules and the limitations on jury-service excuses appear to have helped produce juror pools of citizens who are well capable of making difficult but just decisions.
With physician-patient arbitration no longer presenting clear-cut advantages to the membership, CAP will no longer support arbitration as an alternative to the court system and will no longer supply arbitration agreement forms to CAP physicians and their medical practices. CAP recommends that members no longer offer arbitration agreements to new patients.
As for future claims brought against members by patients who have signed arbitration agreements, these members should discuss with their defense attorneys and claims services representatives whether to assert arbitration when a superior court lawsuit has been filed. (If an agreement between a physician and patient has been signed, the patient or family retains the right to pursue arbitration.) Any member wishing to explore terminating existing arbitration agreements with patients or having other questions about discontinuing arbitration should contact 213-576-8558.
Whether a claim is defended in superior court or in arbitration, CAP physicians can rely on their professional and experienced claims services representatives and defense attorneys to vigorously pursue the best result. The CAP Board of Directors and the Mutual Protection Trust Board of Trustees want you to know that this commitment to you remains beyond dispute.