Arbitration Clause - Physician Contract Glossary

Arbitration Clause

Definition

A provision requiring disputes under the contract to be resolved by an arbitrator rather than in court.

Examples in Context

“Any dispute arising from this Agreement shall be settled by binding arbitration under AAA rules.”

“The parties agree that all claims, disputes, or controversies shall be resolved exclusively through arbitration administered by JAMS.”

Implications for Physicians

• Dispute resolution can be faster and more private than court.
• Limited appeal options if you disagree with the arbitrator’s decision.

Negotiation Tips

• Consider whether arbitration is preferable to litigation.
• Clarify which arbitration rules or location apply.
• Ask to specify a mutually agreed-upon arbitration provider.

Red Flags and Pitfalls

• Employer-chosen arbitrator or unfair arbitration forum.
• High arbitration costs or fee-splitting arrangements.
• Limited legal recourse if the arbitrator’s decision is unfavorable.

Related Terms

• Governing Law
• Location and Time Limits for Disputes

FAQs

• Is arbitration mandatory?
  • If the clause is in the contract, typically yes, unless both parties waive it.
• Can I still sue in court?
  • Usually not if the contract includes a binding arbitration clause.
• What arbitration providers are most common?
  • The American Arbitration Association (AAA) and JAMS are frequently used in healthcare contracts.
• Can I negotiate which arbitration provider is used?
  • Yes. Request an arbitration provider with fair, established procedures.
• Are arbitration costs always shared?
  • Cost-sharing is common, but some contracts may shift more costs to the physician. Ask for cost-sharing terms to be clearly defined.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.