Those in the healthcare industry that provide medical services under a TRICARE contract had nice start to their New Year. On December 31, 2011, President Obama signed the National Defense Authorization Act for Fiscal Year 2012. Section 715 of the bill states that network providers and providers of medical service are not subcontractors that are subject to OFCCP jurisdiction. Prior to this Act, OFCCP had taken the position and had successfully argued that TRICARE subcontractors were subject to OFCCP jurisdiction and affirmative action requirements. OFCCP Directive 293; OFCCP v. Florida Hospital of Orlando, Case No. 2009-OFC-00002 (Oct. 18, 2010).

While TRICARE no longer creates OFCCP jurisdiction, healthcare providers may still be subject to OFCCP jurisdiction due to other contract obligations. For that reason, healthcare providers should always review contracts to determine if they will create compliance obligations.

The text of the Act can be found here.