Top 7 Things Parties Gain by Arbitrating Health Claims and Billing Disputes

Arbitration is a fast-growing method of dispute resolution both in the U.S. and internationally. In the past, some placed arbitration on a lower tier than courtroom justice. However, arbitration law, processes and procedures have evolved, and today arbitration rests on a solid legal foundation. Parties to a dispute benefit from tested and judicially-accepted sets of administered arbitration rules such as those of the National Arbitration Forum.

The National Arbitration Forum is one of world’s leading providers of dispute resolution administration services, including dispute resolution for health claims and healthcare billing disputes. The organization provides efficient administrative services and maintains a distinguished panel of 1,500 attorneys and retired judges located worldwide who apply the substantive law to render legal decisions. The National Arbitration Forum’s standard arbitration rule set outlines the process, schedule and fees for arbitration proceedings and ensures that all legal and equitable remedies are available.

Arbitration offers numerous advantages over lengthy and expensive lawsuits, and it is worthwhile to consider these advantages when deciding how to resolve health claims and healthcare billing disputes.

1. Control
   
   Parties with health claims have a great deal of control over the arbitration process. In their arbitration agreement, parties can select an organization to administer the arbitration, choose the rules that best meet their needs, and include procedures of their own design, including that the arbitrator should apply the substantive law, discovery procedures, costs and timelines. In the best scenario, parties should be able to select the arbitrator who will decide the case and to reject arbitrators who are potentially biased.
   
   
2. Efficiency
   
   Properly administered, the arbitration of health claims and billing disputes is a much quicker process than litigation. Even simple billing disputes can take more than two years when they proceed to trial in court. In contrast, arbitration tends to be a relatively quick solution. The filing documents are simple, rules are fewer and easier to understand, hearings are easily scheduled, and awards are issued promptly. Discovery is available and is not the prolonged ordeal it can be in litigation. The arbitrator can decide all issues at the final hearing. In most cases, the entire process takes only a few months, rather than years.
   
   
3. Economy
   
   When carefully administered, arbitration is significantly less expensive than litigation. Costs, which include filing fees and hearing fees, should be kept in proportion to the amount in dispute. This is especially true if document, telephone, or online hearings are used. Arbitration filing fees begin at $25 for a small claim, and arbitrators charge an hourly rate in line with what attorneys charge in a given locale. Straightforward proceedings allow parties to avoid paying an attorney if they don’t need one.
   
   
4. Participation
   
   The simplicity of arbitration proceedings allows parties to represent themselves, if the case in dispute is not so complex to require counsel. Uniform rules make it easier for parties to understand what is happening and anticipate what will happen next. Because of the parties’ involvement in the process, they are more likely to comply with an arbitral award than with a court order.
   
   
5. Expertise
   
   With busy criminal case calendars, some judges have relatively little experience resolving many types of civil matters, including healthcare. In contrast, arbitrators are often experts in the legal area of the dispute. This expertise assures the parties that the arbitrator will understand the applicable laws, customs and practices involved in the dispute.
   
   
6. Privacy
   
   Arbitration allows parties to resolve their disputes with some measure of privacy. If parties agree to have the arbitration process be completely transparent, they are free to do so.
   
   
7. Relationships
   
   Many aspects of the arbitration process—such as simplified procedures and the fact that lawyers need not be involved—reduce the tendency for parties to take unreasonable positions or make unreasonable claims or demands. This makes it more likely that parties involved a healthcare dispute will maintain good relationships despite their disagreement.

Curtis Brown