The Dallas Morning News reports that a Texas law that allows patients “to see a mediator for…unexpected hospital bills” requires the intermediary to “decide whether a physician or hospital is acting in ‘bad faith’ during the mediation process.” But, “the law is vague on what constitutes bad faith, mediators say,” so they “are reluctant to participate.” Some mediators also note that because “physicians and hospitals can choose the mediator in a patient billing dispute,” mediators could be blacklisted “from future cases,” because the law requires “whistle-blowing to the Texas Medical Board.” The Texas Department of Insurance is expected to “set up regulations for the law” after hearing mediators’ concerns.
From the American Association for Justice news release.
Interesting! If a mediator is not neutral, it undermines the whole idea of mediation.
Of course. And that’s one problem with mandatory arbitration clauses in, for example, homebuilder contracts. If an arbitrator is getting dozens of cases a year from one homebuilder, there has to be at least a subconscious tendency to keep that homebuilder happy. Otherwise, the homebuilder will start using a different arbitrator. There’s an inherent unfairness for consumers in situations like these.