S.B. 240

1

ARBITRATION FOR MEDICAL PROVIDERS
2 1999 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Michael G. Waddoups
5 AN ACT RELATING TO THE JUDICIAL CODE; ESTABLISHING REQUIREMENTS FOR
6 ARBITRATION AGREEMENTS BETWEEN PATIENTS AND HEALTH CARE PROVIDERS.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 ENACTS:
9 78-14-17, Utah Code Annotated 1953
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 78-14-17 is enacted to read:
12 78-14-17. Arbitration agreements.
13 (1) For a binding arbitration agreement between a patient and a health care provider to be
14 valid:
15 (a) the patient, before the agreement is signed, shall be given a verbal explanation of the
16 purpose and material terms of the agreement, including:
17 (i) the requirement that the patient must arbitrate a claim instead of having the claim heard
18 by a judge or jury;
19 (ii) the role of an arbitrator and the manner in which arbitrators are selected under the
20 agreement;
21 (iii) the patient's responsibility, if any, for arbitration-related costs under the agreement;
22 and
23 (iv) the right of the patient to decline to enter into the agreement and still receive health
24 care; and
25 (b) the agreement shall:
26 (i) provide a fair and impartial method for selecting arbitrators, identifying conflicts of
27 interest, and removing arbitrators who have a conflict of interest;

28 (ii) prohibit physicians or health care providers from constituting a majority of arbitrators;
29 (iii) be given to the patient no less than 24 hours before any surgical procedure; and
30 (iv) give the patient no less than 30 days following the receipt of health care to rescind the
31 agreement.
32 (2) Notwithstanding Subsection (1), a health care provider may not:
33 (a) request the parent or legal guardian of a minor or incapacitated person to agree to
34 binding arbitration on behalf of the minor or incapacitated person; or
35 (b) require a patient to agree to binding arbitration as a condition of receiving health care
36 of any kind.
37 (3) This section does not apply to any arbitration agreement that is subject to the Federal
38 Arbitration Act, 9 U.S.C. Sec. 1 et seq.




Legislative Review Note
as of 2-15-99 10:58 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel