42 U.S.C. § 1320c–6: Limitation on liability

Summary

People who give information to an organization that has a contract with the Secretary are protected from criminal charges or civil lawsuits for providing that information, unless the information had nothing to do with the contract or the person knew or had reason to think the information was false. The contracted organization, its employees, fiduciaries, and outside professionals who perform duties allowed by the contract are also protected from criminal charges and civil suits so long as they used due care. Doctors and other health-care providers are shielded from civil suits for actions that follow or rely on the professional care standards used by the contracted organization in their area, if they acted as professionals and exercised due care. The Secretary must pay the reasonable legal defense costs, as the Secretary decides, for the contracted organization, its members or employees, or their legal counsel for suits tied to performing the contract.

Title 42, §1320c–6

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Providers of information to organizations having a contract with Secretary

Notwithstanding any other provision of law, no person providing information to any organization having a contract with the Secretary under this part shall be held, by reason of having provided such information, to have violated any criminal law, or to be civilly liable under any law of the United States or of any State (or political subdivision thereof) unless—

(1)such information is unrelated to the performance of the contract of such organization; or

(2)such information is false and the person providing it knew, or had reason to believe, that such information was false.

(b)Employees and fiduciaries of organizations having contracts with Secretary

No organization having a contract with the Secretary under this part and no person who is employed by, or who has a fiduciary relationship with, any such organization or who furnishes professional services to such organization, shall be held by reason of the performance of any duty, function, or activity required or authorized pursuant to this part or to a valid contract entered into under this part, to have violated any criminal law, or to be civilly liable under any law of the United States or of any State (or political subdivision thereof) provided due care was exercised in the performance of such duty, function, or activity.

(c)Physicians and providers

No doctor of medicine or osteopathy and no provider (including directors, trustees, employees, or officials thereof) of health care services shall be civilly liable to any person under any law of the United States or of any State (or political subdivision thereof) on account of any action taken by him in compliance with or reliance upon professionally developed norms of care and treatment applied by an organization under contract pursuant to section 1320c–2 of this title operating in the area where such doctor of medicine or osteopathy or provider took such action; but only if—

(1)he takes such action in the exercise of his profession as a doctor of medicine or osteopathy or in the exercise of his functions as a provider of health care services; and

(2)he exercised due care in all professional conduct taken or directed by him and reasonably related to, and resulting from, the actions taken in compliance with or reliance upon such professionally accepted norms of care and treatment.

(d)Reimbursement by Secretary for expenses incurred in defense of legal proceedings

The Secretary shall make payment to an organization under contract with him pursuant to this part, or to any member or employee thereof, or to any person who furnishes legal counsel or services to such organization, in an amount equal to the reasonable amount of the expenses incurred, as determined by the Secretary, in connection with the defense of any suit, action, or proceeding brought against such organization, member, or employee related to the performance of any duty or function under such contract by such organization, member, or employee.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1320c–6, act Aug. 14, 1935, ch. 531, title XI, § 1157, as added Oct. 30, 1972, Pub. L. 92–603, title II, § 249F(b), 86 Stat. 1437; amended Oct. 25, 1977, Pub. L. 95–142, § 13(b)(4), 91 Stat. 1198, related to submission of reports by Professional Standards Review Organizations, prior to the general revision of this part by Pub. L. 97–248.

Amendments

1990—Subsec. (b). Pub. L. 101–508 inserted “organization having a contract with the Secretary under this part and no” after “No”, struck out “by him” after “the performance”, and substituted “due care was exercised in the performance of such duty, function, or activity” for “he has exercised due care”.

§1320c–6 Limitation on Liability