FPIC offers an arbitration program for its Florida policyholders. The program was developed as a way to assist physicians who are dealing with rising court costs and jury verdicts.
To participate in the program, please complete the
order form and
participation agreement and return to FPIC by mail or fax:
First Professionals Insurance Company
1000 Riverside Avenue, Suite 800
Jacksonville, FL 32204
Attn: Beth Kosakowski
Fax: (904) 358-6728
For more information, please contact Beth Kosakowski at (800) 741-3742, extension 3280, or
click here.
Frequently Asked Questions
What is the benefit to arbitrating medical malpractice claims for physicians and patients?
Medical malpractice lawsuits are often very lengthy and expensive for all parties. The high cost of malpractice lawsuits contribute to the rising cost of healthcare. As a result, many physicians have been forced to raise their fees, reduce their practices, or leave Florida altogether, threatening patients’ access to medical care. Arbitration is a relatively informal process of resolving disputes that is an alternative to the traditional court system. Through arbitration, patients and physicians both benefit because they are able to more promptly resolve malpractice claims and for less cost to each party. It is also believed that arbitration panels will help to avoid unreasonable jury awards, thereby further lowering costs. These cost savings would positively impact medical professional liability rates and the cost and availability of healthcare services in Florida.
How is arbitration different from mediation?
The primary difference between mediation and arbitration is that the patient(s) agrees to arbitration prior to receiving medical care and treatment, and the arbitrators' decision is binding. The mediation process is used only after a claim has been made and Notice of Intent to Pursue Litigation has been given. In mediation, nothing is determined unless the parties reach an agreement, which is reduced to writing and signed by the parties and their attorneys. In arbitration, the decision of the arbitration panel is binding on the parties, whether they agree with the result or not.
How does the arbitration process work?
In agreeing to arbitration, the parties agree to give up their constitutional right to have any potential medical malpractice claim resolved in court. Instead, all medical malpractice claims are resolved by a panel of three arbitrators. The process starts with a notice from one party to the other demanding arbitration. The patient and the physician would each name one person to serve as an arbitrator. These two arbitrators would pick a third arbitrator. An arbitrator is like a judge, in that he or she listens to the evidence presented by both sides and decides whether malpractice occurred. This panel of three arbitrators would then set up rules about the witnesses and evidence each side could present and they would set up a schedule for the arbitration. If necessary, the arbitrators could issue subpoenas to compel witnesses to appear at the hearing or to obtain documents or other evidence. At the arbitration hearing, each party will be represented by their own attorney. Each party will have the opportunity to present evidence and witnesses, and cross-examine the other party's witnesses. All three arbitrators would listen to the evidence and participate in the decision. They would apply the same law that a court would apply, but the procedural rules are more relaxed and the hearing is less formal than a trial. Based on the evidence and the law, the arbitrators could award any amount or kind of damages that a court could award.
What does binding arbitration mean?
Binding arbitration means that the decision of the arbitration panel is final. Neither party can go to court to appeal the arbitrators’ decision, except on very limited grounds. That is why they call it "binding" arbitration, because both sides are bound by the arbitrators’ decision.
What claims does the arbitration agreement cover?
The arbitration agreement applies to malpractice claims associated with both past and future care and treatment. In addition, the patient agrees that any controversy including, without limitation, claims for medical malpractice, personal injury, loss of consortium, or wrongful death arising out of or in any way relating to the diagnosis, treatment, or care of the patient by the physician, including any partners, agents, or employees of the provider of medical services, shall be submitted to binding arbitration as well.
What claimant(s) does the arbitration agreement cover?
Under the agreement, all claims based upon the same occurrence, incident, or care will be arbitrated in one proceeding. The agreement binds all parties whose claims may arise out of or relate to treatment or services provided by the physician, including the patient, the patient’s estate, any spouse or heirs of the patient, and any children of the patient, whether born or unborn, at the time of the occurrence giving rise to the claim. In the case of any pregnant mother, the term "patient" means both the mother and the mother's expected child or children.
What if the patient signs the arbitration agreement and later refuses to arbitrate?
If a patient enters into the agreement and chooses to go to court anyway, the agreement says that the arbitration proceeding can go ahead without the patient, and he or she will be bound by the arbitrator’s decision even if the patient does not participate.
Should I insist that a patient sign the arbitration agreement before rendering treatment?
FPIC's arbitration program offers two alternative arbitration agreements. Both agreements are the same except for one key provision. One agreement (our form "A" agreement) requires patients to sign the arbitration agreement as a prerequisite to future treatment. The other agreement (our form "B" agreement) permits a patient to terminate the agreement for a period of 30 days from the date the patient signs the agreement. A failure to formally opt out of the agreement in accordance with the procedures set forth in the agreement within the opt out period will obligate the patient to follow the agreement.
What if my patient refuses to sign an arbitration agreement?
Each physician will have to decide for themselves what is best for them in this circumstance after taking into consideration all ethical, legal, and contractual duties that are owed to the patient and/or third parties.
Should I present an arbitration agreement to a patient that presents in an emergent or urgent condition?
No. A patient could attempt to invalidate the arbitration agreement with a claim that they were under duress due to the emergent or urgent condition at the time that they signed the agreement. Physicians should present patients with the arbitration agreement after the emergent or urgent condition has passed. Post treatment signatures are feasible because past treatment is covered by the arbitration agreement.
What is the process for having my patient sign an arbitration agreement?
Provided that a patient is not in an emergent or urgent condition, physicians will present the arbitration agreement to patients (or their representatives) and provide them with an area to view a video approximately six minutes in duration that explains the purpose and fundamentals of the arbitration agreement. After the patient and/or the patient’s representative have viewed the video they will be asked to sign the arbitration agreement. The patient and/or the patient’s representative should be given two copies of their signed arbitration agreement and the original should go into the patient’s file.
What is the purpose of the video?
The video is very important because the manner in which an agreement is entered into is an important factor in determining its validity. Courts have struck down arbitration agreements due to arguments that an individual did not have any concrete knowledge of the agreement. In order to avoid this problem, a video was created to explain in basic terms the practical and legal effects of signing the arbitration agreement. This process is complemented by the fact that the patient, in signing the arbitration agreement, acknowledges that they watched the video, understood it, and had no further questions. In addition, the video performs another important service in that it relieves physicians and their staff from the burden of having to explain the arbitration agreement and it ensures that the message is clear, consistent, and reproducible in the event of litigation.
Is there a cost for the arbitration contract and video?
No. FPIC will provide its arbitration agreement and video to its physician policyholders without charge provided that they complete the order form and sign a participation agreement.
Are the arbitration contract and video offered in different languages?
Yes. The arbitration contract and video are offered in English and Spanish.
Will I get a discount for participating in the arbitration program?
No. There is no premium discount at this time.
May I use an arbitration agreement from another source?
Use of arbitration agreements from other sources will likely not have the benefit of the extensive and careful analysis that has been employed by FPIC. Therefore, we strongly recommend that our policyholders use our version of the arbitration agreement and video.
What effect will the use of the arbitration agreement have on my managed care contracts?
Each physician will have to carefully review their contractual arrangements with their managed care organizations to determine what effect, if any, implementing the arbitration agreement will have on their business relationship with their managed care organizations.
Will my professional liability policy cover me for the cost of the arbitration?
Yes, provided that you have coverage for the claim under the terms of your medical professional liability policy with First Professionals.
How can I participate in the arbitration program?
Physicians must complete the order form and sign the arbitration participation agreement. Upon completion of this form and agreement you will receive an arbitration contract and video in the mail within 10 business days.
How can I get more information about the arbitration program?
Information is provided within the Resources section of the Risk Management materials on our website. You can also request a detailed informational DVD by calling (800) 741-3742, ext. 3064.