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The Health Center Program: Federal Tort Claims Act

The Federally Supported Health Centers Assistance Act of 1992 and 1995 granted medical malpractice liability protection through the Federal Tort Claims Act (FTCA) to HRSA-supported health centers. Under the Act, health centers are considered Federal employees and are immune from lawsuits, with the Federal government acting as their primary insurer.


About FTCA for Health Centers

Since its enactment in 1946, the Federal Torts Claims Act (FTCA) has been the legal mechanism for compensating people who have suffered personal injury by the negligent or wrongful action of employees of the US government. Under Section 224 of the Public Health Service Act, as amended by the Federally Supported Health Centers Assistance Act of 1992 and 1995, employees of eligible health centers may be deemed to be federal employees qualified for protection under the FTCA.

Eligible health centers must submit an original deeming and annual renewal deeming applications to the U.S. Department of Health and Human Services, Health Resources and Services Administration, Bureau of Primary Health Care. 

There is no cost to participating health centers or their providers, and they are not liable for any settlements or judgments that are made. The Federal government assumes responsibility for these costs. The health center, their employees and eligible contractors are considered federal employees immune from suit for medical malpractice claims while acting within the scope of their employment. 

Once deemed, centers are not liable for any settlements or judgments that are made. The Federal government assumes responsibility for these costs. The health center, its employees and eligible contractors are considered Federal employees immune from suit for medical malpractice claims while acting within the scope of their employment. Deemed Health Center Program grantees are immune from medical malpractice lawsuits resulting from the performance of medical, surgical, dental, or related functions with the approved scope of project.

A patient who alleges acts of medical malpractice by a deemed health center cannot sue the center or the provider directly, but must file the claim against the United States. 

These claims are reviewed and/or litigated by the U.S. Department of Health and Human Services Office of the General Counsel and the Department of Justice according to FTCA requirements.  HRSA pays for all settlements and judgments from a separately appropriated Health Center FTCA Judgment Fund.  As of March 27, 2006 there are approximately 843 FTCA deemed health centers.

1.  What is the Federal Tort Claims Act?

  • The Federal Torts Claims Act (FTCA), established in 1946, is the legal mechanism for compensating people who have suffered personal injury due to the negligent or wrongful action of employees of the U.S. government.

2.  Does the Federal Tort Claims Act apply to health center employees?

  • Yes, in certain circumstances.  Under section 224 of the Public Health Service (PHS) Act, as amended by the Federally Supported Health Centers Assistance Act of 1992 and 1995, employees of eligible health centers may be deemed to be federal employees qualified for protection under the FTCA.

3.  How do I know if I’m eligible to be covered under FTCA?
You must work for a health center that is eligible to participate in the FTCA program.  Centers that are eligible to participate in the FTCA program include all grantees funded under section 330 of the PHS Act, including Community Health Centers, Migrant Health Centers, Health Care for the Homeless Centers, and Public Housing Primary Care Centers.

  • Eligible centers must apply for FTCA coverage.
  • All employees and qualified contractors of centers that are deemed covered by the U.S. Department of Health and Human Services are covered under the FTCA program.  Volunteers are not covered by the FTCA program.

4.  How does a health center apply for the FTCA program?

  • Eligible health centers must submit an original deeming and annual renewal deeming applications to the U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA), Bureau of Primary Health Care (BPHC).  Information on how to apply can be found in HRSA Program Assistance Letter 2008-05 (see Related Legislation, Regulations, and Policies section below).

5.  What are the benefits of FTCA coverage?

  • By providing medical malpractice protection to health centers that meet annual program requirements, the Health Center FTCA Program saves health center grantees millions of dollars yearly that they can then invest to increase health care services and fund quality improvement activities. 
  • As Federal employees, the employees of qualified health centers are immune from lawsuits. The Federal government acts as their primary insurer.

6.  What services are covered under the FTCA Program?

  • Deemed Health Center grantees are immune from medical malpractice lawsuits resulting from the performance of medical, surgical, dental, or related functions within the approved scope of project.

7.  Where can I get information about treating non-health center patients under the FTCA Program?

 

  • Talk to your HRSA project officer if you have other questions about treating non-health center patients under the FTCA Program.

8.  What happens when a patient wants to file suit against an FTCA covered health center or health center employee?

  • A patient who alleges acts of medical malpractice by a deemed health center cannot sue the center or the provider directly, but must instead file the claim against the United States government. 
  • These claims are reviewed and/or litigated by the U.S. Department of Health and Human Services Office of the General Counsel and the Department of Justice according to FTCA requirements. 

Related Legislation, Regulations, and Policies

Congress enacted FTCA medical malpractice protection for Federally-supported health centers through the Federally Supported Health Centers Assistance Act (FSHCAA) of 1992 (P.L. 102-501) and FHSCAA of 1995 (P.L. 104-73), later codified as 42 U.S.C. Section 233 (a) – (n).

HRSA/BPHC has issued numerous Program Information Notices (PINs) and Program Assistance Letters (PALs) related to the Health Center FTCA Program.  These documents are available at http://bphc.hrsa.gov/policy/#ftca.


Primary FTCA Regulations
 

Health Centers and the FTCA
Program Information Notice 99-08

FTCA Coverage for Health Center Program Grantees Responding to Emergencies , Policy Information Notice 07-16

New Requirements for Deeming under the Federally Supported Health Centers Assistance Act
Program Information Notice 02-23

Clarification of Policy for Health Centers Deemed Covered Under the FTCA for Medical Malpractice
Program Information Notice 01-11

Questions and Answers on the Federal Tort Claims Act Coverage for Section 330 Deemed Grantees
Program Assistance Letter 99-15

Federal Tort Claims Act Policy Clarification on Coverage of Corporations under Contract with Health Centers
Program Assistance Letter 05-01

Clarification of Certain Policies and Procedures for Health Centers Deemed Covered under the Federal Tort Claims Act for Medical/Dental Malpractice Liability
Program Information Notice 97-06

Update of the Policies and Procedures for Federal Tort Claims Act Coverage for Section 329, 330, 340, 340A Deemed Centers
Program Information Notice 95-29

FTCA Coverage of Free Clinics Volunteer Health Care Professionals
Program Information Notice 04-24