Hospitals That Participate in TRICARE No Longer Considered Federal Subcontractors Simply by Participation in TRICARE Network

February 29, 2012Articles Becker's Hospital Review

Although the holiday season may be over, hospitals and other healthcare providers received a belated but generous gift from the federal government on Dec. 31, 2011, when President Obama signed The National Defense Authorization Act (NDAA) [1] into law. The enactment of the NDAA is significant to all hospitals because Section 715 of the law provides that a federal subcontractor relationship will not be created merely because of one's participation in a TRICARE [2] provider network. Specifically, Section 715 of the NDAA provides:

For the purpose of determining whether network providers under such provider network agreements are subcontractors for purposes of the Federal Acquisition Regulation or any other law, a TRICARE managed care support contract that includes the requirement to establish, manage, or maintain a network of providers may not be considered to be a contract for the performance of health care services or supplies on the basis of such requirement.