Overview
This section establishes the authority and mandatory contractual provisions for federal agencies procuring nonpersonal health care services from independent contractors. It defines the legal relationship between the government and health care providers, ensuring that professional medical judgment remains the sole responsibility of the contractor.
Key Rules
- Independent Contractor Status: Every contract must explicitly state that it is for "nonpersonal" services and that the provider is an independent contractor, not a government employee.
- Clinical Autonomy: While the government may evaluate the quality of administrative and professional services, it is strictly prohibited from exercising control over medical judgments, diagnoses, or specific treatments.
- Mandatory Indemnification: The contractor must indemnify the government for any liability resulting from acts or omissions by the contractor or their agents during performance.
- Liability Insurance: Contractors must maintain medical liability insurance at levels at least equal to the prevailing local community standards for the specific medical specialty, as approved by the Contracting Officer.
- Subcontractor Flow-down: Contractors are required to flow down these requirements, including the provisions of FAR 52.237-7 and insurance mandates, to all health care subcontracts.
Practical Implications
- Risk Mitigation: This policy shifts the burden of medical malpractice and clinical liability from the federal government to the private contractor and their insurance provider.
- Operational Boundaries: Contracting Officers and clinical evaluators must focus on performance outcomes and quality standards rather than directing the specific clinical methods used by the provider.