Q: When hospice fraud CFCA case filed, will ostensible agency liability be considered?

A: Under California law, when a hospice fraud case is filed under the California False Claims Act (CFCA), ostensible agency liability could potentially be considered, depending on the specific facts and circumstances of the case.

Ostensible agency, also known as apparent agency, refers to a situation where a principal (such as a hospice company) is held responsible for the actions of an agent (such as an employee or contractor) because the principal's conduct led a third party to reasonably believe the agent had authority to act on the principal's behalf.

In the context of a hospice fraud CFCA case, ostensible agency liability might come into play if the allegedly fraudulent acts were committed by an employee or contractor of the hospice company, and the hospice company's actions or representations gave the impression that the employee/contractor was authorized to act as they did.

For example, if a hospice employee falsified patient records to inappropriately admit patients who did not qualify for hospice care, and the hospice company had policies, procedures, or supervision in place that gave the appearance of authorizing or condoning such practices, the court might find the hospice company liable under an ostensible agency theory.

However, the application of ostensible agency liability would be very fact-specific. It would depend on factors like:

- The hospice company's policies, procedures, training, and supervision

- Whether the employee/contractor was acting within the scope of their apparent authority

- Whether a reasonable person would believe the employee/contractor had authority based on the hospice company's conduct

- The hospice company's knowledge of or involvement in the alleged fraud

So in summary, while ostensible agency liability is a legal concept that could potentially be argued in a hospice fraud CFCA case in California, its actual applicability would depend heavily on the unique facts and evidence in the particular case. Expert analysis of agency relationships and corporate liability would likely be needed.