Pennsylvania Considering Arbitration of Medical Malpractice Disputes

The Pennsylvania House of Representatives is considering a bill that would require mandatory arbitration of medical malpractice disputes and cap non-economic damages in arbitration at $250,000, while allowing the right to a trial de novo with no caps. The bill, HB 1343, was introduced in the House on May 24th and includes provisions that are meant to discourage customers and providers of health care services from requesting a trial de novo. The bill would cause any action commenced against a health care provider that cannot be settled by the parties, will then have the parties submit the case to mandatory arbitration under the authority of the court of common pleas of the relevant jurisdiction and venue. The decision of an arbitration panel, as well as the inability of an arbitration panel to reach a decision, shall be introduced at trial either by the testimony of one of the arbitrators or by stipulation of the parties. Under the bill, the arbitration panel would be selected randomly by a judge and would consist of a lawyer who practices law in the jurisdiction, a medical professional and a retired judge. The proposed legislation authorizes appeals of an arbitration award. However, filing an appeal does not automatically stay enforcement of an award. A party must petition for that relief. The bill directs courts to limit the issuance of stays on enforcement to situations where they are necessary to prevent "manifest injustice." The sponsor of the bill hopes that the mandatory arbitration concept would stem the tide of medical professionals leaving the state. The sponsor is also confident that the mandatory arbitration could be at lowering insurance rates and reducing the caseload of the courts.