St. John's Law Review

Beyond IDR: Resolving Hospital Disputes and Healing Ailing Organizations Through ITR

By: Orna Rabinovich-Einy

In early July of 2006, yet another scandal regarding professional and ethical standards in Israeli hospitals erupted when it was revealed that a series of experiments on women and the elderly were conducted at several major Israeli hospitals without obtaining patient informed consent, or approval by the appropriate authorities.  A couple of weeks earlier, the Haaretz weekend magazine published a cover story on allegations of medical malpractice in the treatment given to the wife of a senior physician at the hospital at which he worked.  The incident was followed, he claimed, by a series of cover-ups and attempts to silence discussion of what had happened.

These incidents are representative of a broad problem that extends beyond the scope of individual misconduct or negligence.  They are indicative of the absence of effective channels of communication within these institutions—a deficiency which, in turn, fosters misunderstandings and mistakes, escalates conflict, encourages defensive treatment of complaints, and masks incompetence and wrongdoing.  In Israel, this “organizational ailment” is further complicated by an industry in which the operator of the major hospitals—the Ministry of Health—is also the regulator and monitor of their functioning.

The American experience with internal dispute resolution (“IDR”) or “conflict management systems”—that is, the development of an internal, systemized capacity for handling conflict within organizations—has proven that, in certain cases, these mechanisms can be instrumental in remedying organizational ailment.  This paper suggests that a particular IDR model, which the author refers to as internal transformative resolution (“ITR”), could provide more satisfactory, often speedier, and less costly resolutions to individual complaints as well as help organizations function in a healthier manner by facilitating the engagement of ongoing dialogue with the various stakeholders, and the proactive addressing of problems.  

To date, the Israeli dispute resolution landscape has not made any significant strides with respect to IDR.  This paper demonstrates, through a case study of hospital disputes, the benefits of ITR systems and the ways in which this particular model can better address some of the perils associated with IDR.  The paper begins with some background on dispute resolution in Israel, the forces that have shaped the dispute resolution landscape there, and the reasons for the dearth of IDR in Israel.  The article then turns to the ITR model and explains the ways in which it can help organizations handle disputes more effectively than other routes for dispute resolution, both on an individual and organizational level.  Then, in light of the benefits offered by ITR systems, the article addresses why hospitals have refrained from adopting these systems voluntarily.  Finally, the paper concludes that the institutional and legal environment actively discourages any effort for information gathering, quality control, and learning in the medical arena—the driving force behind ITR systems—and offers some thoughts on changes in the legal environment that would provide incentives for hospitals to develop ITR systems.