Meaning
Dispute resolution mechanisms that rely on an independent group of physicians to determine a person’s capacity to continue their professional duties provide a neutral path for health-related separation. Deployment of medical panel arbitration occurs when there is a disagreement between a founder and a board regarding the founder’s physical or mental ability to lead. The panel consists of neutral experts who review medical records and conduct examinations to reach a factual conclusion.
Their findings are usually binding and supersede the opinions of personal doctors or company representatives. Professional medical assessment provides the objective evidence required to resolve the conflict.
Health Evaluation
Selecting the members of the medical group requires agreement from both the individual and the organization to ensure fairness. This process involves identifying specialists with the specific expertise needed to assess the condition in question. The cost of these experts is typically shared between the two parties to maintain the independence of the final report.
Impairment Standard
Defining the level of disability required for a forced exit involves comparing the current health of the person against the demands of the role. This standard is purely functional and focuses on the ability to make decisions, communicate with the team and manage the daily operations of the firm. The panel does not look at the cause of the condition but only at the current and projected capacity of the individual.
Binding Resolution
Accepting the result of the arbitration is a mandatory step in many executive employment contracts. This finality prevents long legal battles over health issues and allows the company to move forward with a succession plan. The cost to the person is the loss of their position based on a third-party assessment they cannot appeal.
