What exactly is the Federal Tort Claims Act (FTCA)?

Would you love to have more funds available to provide health services to those you serve? Check out the information below regarding FTCA deeming and see if it is right for you and your organization.

What exactly is the Federal Tort Claims Act (FTCA)?

The FTCA was a bill passed by the United States Congress in 1946 in which the Federal Government gave partial consent to be sued for civil wrongs. The FTCA provides a limited waiver of the Unites States’ immunity from lawsuit, allowing claims “for damages for injury or loss of property, or personal injury or death caused by the negligent or wrongful act or omission of any employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred.”

28 USC §1346(b).

Does the FTCA apply to health center employees?

Employees of eligible health centers may be deemed as federal employees for the purposes of liability protections under the FTCA for acts or omissions in the performance of medical, surgical, dental, or related functions resulting in personal injury, including death, and occurring within the scope of employment (including within the approved scope of project).

42 CFR Part 6 Federally Supported Health Centers Assistance Act

What are the benefits of FTCA coverage for a health center?

FTCA protections to health centers can increase the availability of funds to provide primary health services by reducing or eliminating a health center’s malpractice insurance premiums. In addition, eligible health centers and covered individuals (governing board members, officers, employees, and certain individual contractors) are immune from civil lawsuits when they have been deemed as federal employees for the purposes of FTCA liability protections for acts or omissions mentioned in performance above. In qualifying circumstances, the Department of Justice, rather than private counsel, defends lawsuits that are within the criteria for coverage.

What are the FTCA Deeming Requirements?

In order to obtain deemed Public Health Service employment status under sections 224(g)-(n) of the PHS Act for themselves and for their “covered individuals,” Health Center Program awardees and subrecipients must submit for approval by HRSA an annual deeming application that demonstrates the health center:

Has implemented appropriate policies and procedures to reduce the risk of malpractice and the risk of lawsuits arising out of any health or health-related functions performed by the health center;
Has reviewed and verified the professional credentials, references, claims history, fitness, professional review organization findings, and license status of its physicians and other licensed or certified health care practitioners;
Has no history of claims under section 224 of the PHS Act or, if such a history exists, fully cooperates with the Attorney General in defending against any such claims, and takes any necessary steps to assure against such claims in the future; and
Will fully cooperate with the Attorney General and other applicable agencies in providing required information under section 224 of the PHS Act.

NOTE: There is a specific deeming process for health centers that wish to sponsor volunteers for deemed employee status. The FTCA VHP (Volunteer Health Professionals) program is separate from the FTCA Health Center Program and requires a separate deeming process for volunteers. Health Centers must submit an annual application for deeming on behalf of each of their individually names VHPs to HRSA.

NOTE: The Health Insurance Portability and Accountability Act (HIPAA) granted medical malpractice coverage through FTCA to volunteer Free Clinic health care professionals. The Patient Protection and Affordable Care Act extended this coverage to Free Clinic board members, officers, employees, and individual contractors. A Free Clinic must apply for and sponsor a qualified individual for FTCA medical malpractice coverage deeming.

What are some helpful resources?

HRSA Federal Tort Claims Act (FTCA) website