Introduced: Protecting Health Care Providers from Increased Administrative Burdens Act

A few of VHCA nursing facilities have received notice from the federal Office of Federal Contract Compliance Programs (OFCCP) indicating that the facility would be audited for compliance with certain federal regulations that only apply to federal contractors, such as requirements concerning compliance with affirmative action laws.  The OFCCP has taken the position that participation in TRICARE resulted in federal contractor status, thereby affecting health care providers, including nursing facilities.  In the past, health care providers have not been considered federal subcontractors simply because they provide health care services and receive payment under a federal health care program.

Legislation (H.R. 3533) was introduced in Congress last week that, if passed by Congress, would clarify that health care providers are not federal contractors for the purpose of affirmative action laws.