Kaiser Permanente Sets Up New Arbitration Board - Brief Article

Healthcare Financial Management, July, 2001

An arbitration oversight board has been established to oversee the independent administration of the arbitration system at Kaiser Permanente, Oakland, California. The new board's mission is to ensure a speedy, cost-effective, and fair arbitration process that protects the privacy of the participants. The board periodically will review and evaluate the experience of those using the arbitration system and revise the system rules as necessary. The independent administrator's office will report to the board.

Responding to the California Supreme Court's criticism of the health plan's self-ad ministered system in the 1997 decision Engalla v. Permanente Medical Group, Kaiser Permanente convened a blue-ribbon advisory panel to evaluate its arbitration process and recommend improvements. The panel recommended that Kaiser Permanente turn over administration of its arbitration system to an independent firm and create a consumer advisory group to oversee the work. The new board consists of plaintiff and defense attorneys, consumer health advocates, labor representatives, physicians, nurses, and health policy leaders.