Q: Allegations of hospice liability in FCA case.
Would hospice allege in false claims act lawsuit, that not liable for actions of independent contractors?
A: Yes, the hospice will claim it is not liable for actions of independent contractors.
A:
In a False Claims Act (FCA) case, a hospice may attempt to argue that it is not liable for the actions of independent contractors. The reasoning would be that the hospice has limited control over the specific actions of contractors who are not considered direct employees. However, this argument may not fully shield the hospice from liability.
Courts often look beyond labels like "independent contractor" to examine the relationship between the parties. If the hospice directed, benefited from, or should have been aware of the improper actions, it might still face liability under the FCA. The key is whether the hospice had a level of oversight or knowledge of the fraudulent actions.
Even if independent contractors are involved, a hospice has a responsibility to ensure compliance with federal regulations. Failing to properly monitor and prevent false claims could lead to liability regardless of employment status.
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