BINDING ARBITRATION OF DISPUTES

Arbitration – Part of the MICRA Package

Though other provisions usually get more coverage when the Medical Injury Compensation Reform Act of 1975 is in the news, the statutory endorsement of physician-patient arbitration contracts has been part of MICRA since the beginning.

California Code of Civil Procedure Section 1295 states that contracts between patients and physicians that contain certain required language “are not contracts of adhesion, unconscionable, or otherwise improper.” These requirements include precise language in the first part of the arbitration agreement explaining that by signing the agreement, the parties are giving up their constitutional right have their dispute over the medical care rendered decided by a lawsuit in a court of law.

Since the Legislature’s passage of MICRA, the courts have consistently shown their acceptance of this alternative dispute resolution process. For example, judges have approved clauses in arbitration contracts signed by mothers covering the care of their unborn child and have also approved agreements that indicate the parties’ desire to arbitrate any dispute that may arise from care rendered before the agreement is signed.