Certified Medical Administrative Assistants (CMAA) Practice Exam 2025 - Free CMAA Practice Questions and Study Guide

Arbitration is a process in which both parties, in this case, the patient and physician, agree to resolve disputes outside of the court system. This mechanism typically involves a neutral third-party arbitrator who hears the case and makes a binding decision. The essence of arbitration lies in its ability to provide a more expedited, cost-effective, and private resolution compared to traditional litigation.

In healthcare settings, arbitration is frequently utilized to settle conflicts regarding medical treatment, billing disputes, or other professional disagreements. By signing an arbitration agreement, both the patient and physician acknowledge their willingness to forgo a court trial, thus streamlining the resolution process and reducing the burden on the judicial system. This makes arbitration a common choice for resolving disputes in the medical field, as it often leads to faster outcomes than litigation, allowing both parties to move forward without the lengthy process associated with courts.