The last thing you need while dealing with a health crisis is being asked to sign paperwork that might impact your legal rights. One such document that patients often come across in the healthcare realm is an arbitration agreement. Arbitration is a form of dispute resolution outside the courts, where a neutral third party (the arbitrator) decides the outcome. These agreements are intended to prevent patients from suing providers in the event of a dispute, instead steering them towards arbitration. While they may seem harmless at first glance, there are several reasons you might want to think twice before signing a healthcare arbitration agreement.
Loss of Rights and Appeal: By signing an arbitration agreement, you are essentially forfeiting your right to a jury trial. Instead of a decision made by a group of your peers, your case will be decided by an arbitrator. Furthermore, the arbitrator’s decision is typically final, with very limited or no grounds for appeal. This means that if the arbitrator makes a decision you believe to be unjust, you are stuck with it.
Lack of Transparency: Court proceedings are public record, and there is a level of transparency that is essential to the legal process. However, arbitration proceedings are private, and the decisions are confidential. This lack of transparency can lead to unjust decisions that are not subject to public scrutiny.
Potential Bias: There is a risk of bias in arbitration proceedings. In the healthcare industry, hospitals and other large healthcare providers are frequent users of the same arbitration services, leading to concerns that arbitrators might be biased in their favor.
Expensive Process: While proponents of arbitration argue it is less expensive than court litigation, this is not always the case. There can be significant fees involved, including the arbitrator’s fee, administration fees, and other costs related to the process. These costs can be prohibitive for many patients.
Limited Discovery: In a traditional court setting, both sides have broad rights to information held by the other party through a process called discovery. This can be crucial in personal injury cases where the medical provider has most of the relevant information. In arbitration, discovery rights are significantly more limited, often putting the patient at a disadvantage.
Imbalance of Power: Healthcare providers often present arbitration agreements as a condition of treatment. This puts patients in a vulnerable position where they feel they have no choice but to sign. Before signing, ask if the agreement is a requirement for receiving treatment. If it is, consider checking with other providers in your vicinity to see if they provide treatment without requiring an arbitration agreement.
No Class Actions: In many cases, arbitration agreements prohibit patients from joining together in a class action lawsuit. This means that if many patients are harmed by the same practice, they must each individually go through arbitration rather than joining together in a class action that would provide more bargaining power.
No Public Benefit: Court cases have the potential to impact society at large by setting legal precedents and bringing about changes in policy. Arbitration decisions, on the other hand, do not set precedents and do not lead to public legal reforms.
Navigating the healthcare system can be complicated and stressful, particularly when you’re dealing with a health issue. It’s important to know your rights and understand what you’re signing. If you are presented with an arbitration agreement, consider consulting a personal injury lawyer to understand the potential implications fully. Your health, your rights, and your future could be at stake.