Tuesday, March 17, 2015

TX Supreme Court Agrees with AHCA/NCAL on Arbitration Matter

Dianne De La Mare

The Supreme Court of Texas has issued an opinion agreeing with the legal position taken by AHCA/THCA in an amicus brief and holding that the Federal Arbitration Act (FAA) preempts the arbitration enforcement provisions in the Texas Medical Liability Act (TMLA), which requires arbitration agreements to contain certain language in boldface type because the McCarran-Ferguson exception applies only to regulations on insurance business and not to restrictions on arbitration claims by patients and providers.

This is a significant win for our members who understand that the use of arbitration agreements would enable caregivers to spend more on quality of care for patients than spend precious resources on litigation costs. See the decision in The Fredericksburg Care Company v Perez at http://www.txcourts.gov/media/885314/130573.pdf.

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