Legal Alert: Hospital's Participation in TRICARE Subjects it to Federal Contractor Affirmative Action Obligations

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Relying on the ARB's 2009 decision in OFCCP v. UMPC Braddock, a federal administrative law judge (ALJ) has held that a Florida hospital is a subcontractor of a managed care services provider's contract between TRICARE and Humana Military Healthcare Services Inc. (HMHS) and, thus, is subject to the affirmative action obligations imposed on federal contractors.

In OFCCP v. Florida Hospital of Orlando (October 18, 2010), the ALJ held that the hospital, which the ALJ characterized as having a contract with HMHS to provide health care services for TRICARE beneficiaries, has assumed some of HMHS's duties under its contract with TRICARE, which makes it a federal subcontractor. Accordingly, the ALJ held that the hospital is subject to the equal employment opportunity and affirmative action obligations imposed by Executive Order 11246, § 503 of the Rehabilitation Act, and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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