Q: Hospice vicarious liability for independent contractors
For hospice fraud by Hospice as General stock corporation (means CEO).
Hospice as corporation bears vicarious liability for independent contractors, as applicable.
A: It could depend on the extent of control they had over the activities of the ICs. Good luck
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
In California, a hospice operating as a general stock corporation can be held vicariously liable for the actions of its independent contractors in certain circumstances, particularly when those actions involve fraud. Here's a more detailed explanation:
1. Vicarious liability: This legal doctrine holds an employer responsible for the wrongful acts of its employees or agents, if those acts are committed within the scope of their employment or agency.
2. Independent contractors: Typically, companies are not liable for the actions of independent contractors. However, there are exceptions, especially when the company retains control over the contractor's work or when the work involves a non-delegable duty.
3. Hospice fraud: If an independent contractor engages in fraudulent activities related to hospice services, such as falsifying patient records, billing for services not provided, or enrolling ineligible patients, the hospice corporation may be held liable.
4. Corporate liability: In a general stock corporation, the CEO and other corporate officers can be held personally liable for their own misconduct or negligence in overseeing the company's operations. The corporation itself can also face liability.
5. Applicable laws: The federal False Claims Act and California's False Claims Act allow private individuals to bring qui tam lawsuits on behalf of the government against entities that defraud government programs like Medicare or Medicaid.
To establish vicarious liability, a plaintiff would need to prove that the independent contractor's fraudulent actions were within the scope of their work for the hospice and that the hospice had knowledge of, or participated in, the fraudulent scheme.
It's important to note that liability determinations are case-specific and depend on the particular facts and circumstances involved. Consultation with an experienced healthcare fraud attorney is recommended for hospice corporations facing such issues.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
