EDITORIAL: Last-best-offer an instrument of compromise
The case in question is an impending end to a five-year consent decree between the
Shapiro wants the court to continue the consent decree indefinitely. As part of that, he proposed that the court employ a system of last-best-offer arbitration to settle any reimbursement disputes between the health care system billing for care and the insurer paying the bill.
Under last-best-offer, each side would propose a payment and an arbitrator would choose one of them, and would not be allowed to fashion a compromise.
As a result, the parties would be more likely to fashion a compromise of their own than to risk losing everything with an extreme proposal to an arbitrator.
The system is best known for its success in Major
This year, of the 198 players eligible for arbitration, more than 190 reached agreements with their teams without going to arbitration. That, of course, is the objective of the exercise. The risk of losing in arbitration cause each side to compromise toward the middle.
Last-best-offer is an instrument of compromise to produce fair settlements.
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