Federal District Court Affirms U.S. Department of Labor's Position that Healthcare Providers Participating in HMOs for Federal Employees are Subject to Federal Contractor Affirmative Action Requirements

In a long-awaited decision, the Federal District Court for the District of Columbia has ruled that three hospitals that provide medical services through a Health Maintenance Organization (HMO) to individuals covered by the Federal Employees Health Benefits Plan (FEHBP) are subject to the Office of Federal Contract Compliance Program’s (OFCCP) jurisdiction and reporting requirements.

 Background

The case, UPMC Braddock, et al. v. Harris, involves three hospitals (the Hospitals) affiliated with the University of Pittsburgh Medical Center, which entered into contracts with the UPMC Health Plan (the Health Plan), an HMO to provide medical services to individuals enrolled in its coverage program. UPMC Health Plan, in turn, contracted with the U.S. Office of Personnel Management to provide coverage to federal employees who participate in the FEHPB. OFCCP attempted to assert jurisdiction over the Hospitals and the Hospitals refused to comply, arguing that they were not federal government subcontractors. Contine reading at Littler's Healthcare Employment Counsel.

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