Did the hardliners win at Versailles because the Americans were too weak with the flu to object? If so, it would be just one way that disease profoundly affected public policy in the wake of the 1918 flu.
Legal arbitration only makes sense when all parties involved voluntarily enter into a contract. With police arbitration, the public has no seat at the table. It's a system designed to protect police only.
The medical profession has long employed the state to pad doctor salaries and influence. Before the Flexner Report, mechanics made more than doctors and the brightest students avoided the profession to enter the clergy.