The Medical Accident Prevention and Dispute Resolution Act (hereinafter referred to as “the Act”) is enacted for the purposes of protecting the rights of both medical personnel and patients, promoting a harmonious physician–patient relationship, improving the medical practice environment, ensuring patient safety, improving the quality of medical care, and establishing an appropriate and rapid mechanism for handling medical disputes.

The competent authorities referred to in the Act shall be the Ministry of Health and Welfare at the central government level, the municipal governments at the municipal level, and county (city) governments at the county (city) level.

The terms used in the Act are defined as follows:
1. Medical accident: Medical services at a medical institution that result in major injury or death, not including unavoidable outcomes due to the disease being treated or medical treatment.
2. Medical dispute: Disputes arising from the patient believing that an undesirable clinical outcome is the responsibility of medical personnel or medical institutions.
3. Medical institution: Institutions established by medical personnel indicated in Article 10 Paragraph 1 of the Medical Care Act upon application approval per the regulations of their profession.
4. Medical care institution: Hospitals and clinics established in accordance with the Medical Care Act.
5. Party: Medical personnel, medical institutions, patients, or other persons related to a medical dispute who, in accordance with the law, may commence a lawsuit.

The competent central authority shall commission government funded foundations to conduct medical professional consultations under Article 9 and medical dispute analyses under Article 21 Paragraph 2. As necessary, the competent central authority may provide funding for foundations to conduct these activities.
When the foundations referred to in the preceding paragraph conduct medical professional consultations and medical dispute analyses, they shall be fair-minded, objective, and neutral, and they must abide by conflict of interest rules.
The operational procedures, qualifications of personnel, fee basis, conditions for no-fee service, regulations for conflicts of interest rules, and other related matters are established by the competent central authority.
Unless all parties involved in the medical dispute agree, the medical professional consultation and the medical dispute analysis provided by a foundation established under Paragraph 1 may neither be used as evidence in or as the basis for litigation related to a case concerning the same dispute, nor be used as basis for relevant administrative sanctions.

The competent central authority may ask the foundation established under Article 4 Paragraph 1 to provide business and financial reports at any time and may send personnel to inspect business conditions, accounting records, and other related information at any time.