EHealth agrees to arbitration with CGI Information Systems in important turn of events in healthcare technology RAINTREE, Calif. (BUSINESS WIRE) EHealth, a major online health insurance marketplace, recently agreed to proceed with arbitration in its legal dispute with CGI Information Systems and…isoftwareReviews.com The option reiterates a shift by more and more businesses away from open court dockets and towards ad hoc arbitration to resolve an increasing number of intricate commercial controversies.
Background of the Dispute
The eHealth/CGI Information Systems discord began over a contract. CGI Information Systems had been contracted by eHealth to build and support key components of its online architecture. However, eHealth maintained CGI did not meet the “agreed standards and deliverables” which resulted in “significant operational penalties and financial loss to the business. Details of the complaints focus on delays, his systems underperforming, and that project milestones were never completed, all of which destroyed eHealth’s ability to deliver seamless services to its clients.
CGI Information Systems Is a worldwide service provider of IT and business consulting going by contract terms asserts those charges, it has followed the contract terms and continued the level of professional service required. The company attributes any failures to miscommunication or external issues outside of its purview.
Advantages of Arbitration
Arbitration has several advantages, for both eHealth and CGI Information Systems, in resolving issues in a lawsuit. Speed: The ability to reach resolution more quickly than if you were involved in traditional litigation. Traditional court proceedings can drag on for weeks, months, or even years, and they can be very expensive. Arbitration is more procedurally streamlined and often renders a binding determination in a shorter period of time.
Arbitration also provides a degree of confidentiality that court cases typically do not provide. This anonymity is particularly beneficial for companies that want to keep any publicity surrounding the dispute to a minimum, and also keep details of their business operations confidential for the purposes of arbitration. CGI Information Systems has the incentive of not wanting the additional costly distraction of a failing Ivy by not airing sensitive contract details and eHealth — well, it has even more at stake in terms of keeping operational information away from the public.
The process of arbitration also permits the parties to select arbitrators who have experience in and understanding of the subject matter of the dispute. This is especially advantageous in complex areas, such as medical technology, as the technical details and industry guidelines are key to resolving disputes. Both sides can choose arbitrators with the right expertise, thus resulting in a fairer, more informed decision.
Implications for the Industry
This motion on the eHealth versus CGI Information Systems case reflects a larger trend in the industry towards arbitration. Given the importance of digital transformation in healthcare, there are only going to be more healthcare health tech partnerships of this nature, and those stakes are only getting higher. These partnerships thus also create opportunities for disagreements, highlighting the need for efficient conflict resolution mechanisms.
With the increase in efficiency, confidentiality, and availability of expert decision-makers, more and more parties opt for arbitration today. Indeed, this trend reflects the fact that companies are starting to be more strategic about managing risks but also shows a more mature industry that appreciates the importance of expertise in dealing with conflicts.
Finally, the move represents a pivotal move towards a faster and more specialized resolution for both eHealth and CGI Information Systems relating to their legal dispute. This ruling thus establishes a benchmark for other companies operating in the healthcare technology space, promoting arbitration over court litigation. In an ever-evolving industry, employing methods of conflict resolution so pragmatic will become essential to sustaining partnerships that are both sturdy and effective.
