In: Operations Management
IRAC Summary
During a prenatal appointment for her high-risk pregnancy, Monica Moore was told to complete a series of forms related to medical treatment, privacy rights, and payment of services. Neither the office receptionist who gave her the forms nor her OBGYN specialist physician (to whom she had been referred) brought her attention to the fact that among the forms she was signing was also included a four-page long arbitration agreement. The title of the top page, however, was in boldface type and capitalized letters: “ARBITRATION AGREEMENT FOR CLAIMS ARISING OUT OF OR RELATED TO MEDICAL CARE AND TREATMENT.” The arbitration agreement purported to be binding on Monica, her husband, and their unborn child; required that all future claims against any medical provider in the practice would be arbitrated (if the medical provider elected to be involved in arbitration); stated that Monica’s, her husband’s, and her unborn child’s constitutional rights to jury trial or trial by judge were being waived; noted that the patient acknowledged her right to consult with an attorney prior to signing the contract; and provided Monica with 15 days in which to rescind the agreement after she signed it, although she was not provided with a copy of the arbitration agreement. Monica later filed a medical malpractice action in state court, and the trial judge granted the defendant medical provider’s motion to compel arbitration. Monica appealed on the grounds that the arbitration agreement is a contract of adhesion with both procedural and substantive unconscionability.
This is a case between a patient and the hospital management. So let's check the facts in here.
Issue
(1) The patient was showing symptoms of a high-risk pregnancy.
(2) During the routine check-up, hospital management has provided an arbitration agreement to the patient and she signed on it.
(3) The hospital management has not provided a copy of the arbitration agreement to the patient.
(4) The patient later filed a lawsuit against the hospital for medical malpractice.
Rule & Application
(1) It was a high-risk pregnancy case, so the hospital management has to safeguard their interest through an arbitration agreement.
(2) Since the title and the main content of the agreement were clear and readable there was no confusion to the patient while signing on it.
(3) After signing the contract, the hospital management has provided sufficient time for the patient to consult with an attorney or to revoke the agreement, in case if the patient doesn't want to continue with it.
(4) This was a prenatal appointment and the patient was aware of the situation. So it's the responsibility of the patient to ask for a copy of the arbitration agreement, if she required any further clarification on it.
(5) Even though it was a high-risk pregnancy, the hospital never hesitated to attend her and the patient decided to continue with them.
Conclusion
Here, the patient was fully aware of the arbitration agreement terms she has signed. Moreover she never raised any concerns about it while her treatment. There is no evidence against the hospital that they performed any medical malpractice. If she had other complaints regarding the treatment, then it can be considered separately. But as per the above scenario, this case is not valid and should be dismissed.