Legal Alert - Acute Care Hospitals and Federal Contracts: The Saga Continues
by Kathryn Hackett King and John F. Lomax, Jr.
The question of whether the federal Office of Federal Contract Compliance Programs (“OFCCP”) has jurisdiction over acute care hospitals has taken a new turn. The Labor Department Administrative Review Board (“ARB”) has reconsidered and reversed an October 2012 dismissal of an OFCCP complaint against Florida Hospital of Orlando for lack of jurisdiction. Florida Hospital provides medical services for a federal contractor, Humana, which in turn has established networks of health care providers for active and retired military members under a contract with TRICARE, the Department of Defense’s health care program. This development means the Department of Labor’s quest to obtain jurisdiction over acute care hospitals via federal contract status has new life.