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2002 FINAL STATELEGISLATIVE PROGRAM CONTROVERSIAL ISSUE ISSUE: HEALTH CLAIMS ARBITRATION SUMMARY: The Health Claims Arbitration Office (HCAO) was established in 1976 as a means of arbitrating claims against health providers for damages exceeding $10,000. Once a claim has been filed, the Director of the Office must notify all affected parties and supply a list of categorized qualified arbiters (attorneys, health care providers, interested lay persons) from which a three-person arbitration panel is chosen. The panel is responsible for determining liability and, if appropriate, assessing damages. Parties that disagree with the panel's findings may appeal the decision to the Circuit Court for a reversal or modification of the award. In 1985, the Special Committee on Health Claims Arbitration of the MSBA issued a report to the Board of Governors recommending numerous changes to the HCAO including: specific lists to be used in selecting panel members; authority of the Director of the Office; jurisdiction in cases involving non-health care providers; allocation of costs, interest payments or awards; rules of evidence; and, the process for transferring cases to the circuit court. In recent legislative sessions, most of the proposals dealing with the HCAO have centered on qualifications and requirements of panel members, restrictions on attorney's fees and expenses in cases involving "bad faith" or without substantial justification, and the qualifications of expert witnesses. During the 1989 General Assembly, the MSBA supported a successful bill that prevented a physician from serving as a qualified expert in cases in which that physician was a defendant. In 1995, legislation passed to permit claimants or defendants to waive unilaterally the arbitration of a claim before the HCAO under specified circumstances. No bills affecting this process were passed by the General Assembly in 1996, 1997, 1998, 1999, 2000 or 2001. MSBA 2002 POSITION: Review carefully all legislation that deals with the Health Claims Arbitration Office. All bills that propose to limit attorney's fees in health care cases should be opposed as infringements on the jurisdiction of the Court of Appeals' oversight of the legal profession. SAMPLE LEGISLATION:
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