Commercial (U.S. domestic) - Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial [or other] Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Drafting Effective Alternative Dispute Resolution Clauses for Healthcare Contracts
In the healthcare industry, arbitration or mediation clauses are often included in contracts between healthcare payors and providers. Disputes are typically resolved faster and more cost-effectively through arbitration than in litigation. How an arbitration will proceed is controlled by what is written in the alternative dispute resolution (ADR) clause and what the parties agree to.
There are a number of reasons why a well-drafted arbitration clause can be important in healthcare disputes.
There are a number of reasons why a well-drafted arbitration clause can be important in healthcare disputes.
AAA Healthcare Rules:
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Compare AAA® Clauses
Compare this standard AAA commercial clause to a standard AAA healthcare clause.
Standard AAA
Commercial Clause
Why AAA Healthcare
Payor Provider Clause
The AAA Standard Healthcare Payor Provider clause denotes that the AAA Healthcare Payor Provider Rules will govern the dispute. The Healthcare Payor Provider Rules have a number of distinct differences from the AAA Commercial Rules that make them especially helpful to Payor Provider disputes.
Healthcare Payor Provider - Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association pursuant to its Healthcare Payor Provider Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Custom Clauses
There are many options to customize your arbitration or mediation clause beyond the standard clause, such as the number of arbitrators, location, and length of the arbitration. Writing your clause effectively can have a big impact on the time, cost, expertise, and convenience of resolving any future dispute.
Clause customizations can include:
- The Number of Arbitrators
- Arbitrator Qualifications
- Locale of the Hearing
- Limitations to Discovery
- Length of the Proceedings and more
Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Healthcare Payor Provider Arbitration Rules and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Claims shall be heard by a single arbitrator. When selecting an arbitrator from neutrals who have the background and qualifications for the particular dispute, the parties agree to consider the appointment of diverse candidates.
The place of arbitration shall be New York. The arbitration shall be governed by the laws of the State of New York.
Depositions shall be limited to a maximum of one per party and shall be held within three days of the making of a request. Additional depositions may be scheduled only with the permission of the arbitrators and for good cause shown. Each deposition shall be limited to a maximum of three.
Time is of the essence for any arbitration under this agreement, and arbitration hearings shall take place within 90 days of filing and awards rendered within 120 days. Arbitrator(s) shall agree to these limits prior to accepting appointment.
The arbitrator(s) shall not award consequential damages in any arbitration initiated under this section. The arbitrators may determine how the costs and expenses of the arbitration shall be allocated between the parties, but they shall not award attorneys’ fees.
Except as may be required by law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both parties.
Claims shall be heard by a single arbitrator. When selecting an arbitrator from neutrals who have the background and qualifications for the particular dispute, the parties agree to consider the appointment of diverse candidates.
The place of arbitration shall be New York. The arbitration shall be governed by the laws of the State of New York.
Depositions shall be limited to a maximum of one per party and shall be held within three days of the making of a request. Additional depositions may be scheduled only with the permission of the arbitrators and for good cause shown. Each deposition shall be limited to a maximum of three.
Time is of the essence for any arbitration under this agreement, and arbitration hearings shall take place within 90 days of filing and awards rendered within 120 days. Arbitrator(s) shall agree to these limits prior to accepting appointment.
The arbitrator(s) shall not award consequential damages in any arbitration initiated under this section. The arbitrators may determine how the costs and expenses of the arbitration shall be allocated between the parties, but they shall not award attorneys’ fees.
Except as may be required by law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both parties.
ClauseBuilder®
is a simple online tool to help individuals and organizations develop clear and effective arbitration and mediation clauses. The self-guided process begins with a standard AAA Clause and allows you to select a variety of options to customize the clause to the needs of your desired process or contract.
Learn More About the Benefits of AAA Arbitration for the Healthcare Industry.
AAA Healthcare Team
For more information, contact a member of the Healthcare Team
