Prior to the institution of a proceeding or claim by a patient, any offer of reparations and all communications incidental thereto made in writing to a patient by a health professional or health care institution are privileged and may not be used by any party to establish the liability or measure of damages attributable to the offeror.

(a) Such an offer shall provide that a patient has thirty (30) days to accept or reject the offer, or such lesser period of time as may be necessitated by the condition or health of the patient.

(b) After any rejection or the lapse of the applicable time, any party may demand arbitration.
(c) Any such offer to a patient shall include a statement that the patient may consult legal counsel before rejecting or accepting the offer.
(d) In a case where a potential claim is identified by a health professional or health care institution where reparations, in its judgment, are not appropriate, the professional or institution may, at its option, file a demand for arbitration which demand shall identify the potential claim and deny liability.