OFCCP Enforcement Powers Expanded Over Healthcare Industry

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In a case closely monitored by the healthcare industry, a recent decision from the United States District Court for the District of Columbia expanded the jurisdiction of the Office of Federal Contract Compliance Programs (“OFCCP”) over many healthcare providers. UPMC Braddock v. Harris, Civil Action No. 09-1210, 2013 WL 1290939 (D.D.C. March 30, 2013). As a result of this decision, the OFCCP will likely continue asserting jurisdiction over healthcare providers it determines are government subcontractors and require that they comply with all requirements imposed on government contractors and subcontractors.

The Case -

The district court considered whether the OFCCP could assert jurisdiction over three hospitals that subcontracted with insurance companies. The court concluded that the hospitals qualified as government subcontractors and, as a result, were subject to certain statutory and regulatory requirements promoting equal opportunity and affirmative action efforts. Consequently, certain hospitals will be subject to reporting requirements, compliance evaluations, and on-site reviews administered by the Office of Federal Contract Compliance Programs (“OFCCP”).

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