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Affirmative Action Invades the Health Care Industry

By Christopher Durham
June 27, 2011

In the health care industry, rapid ' often seismic ' change frequently feels like the norm. Even by that standard, however, in the past year or so, health care providers and others in the industry have felt under siege, due in no small part to the passage of the landmark federal health care reform law, the Patient Protection and Affordable Care Act, in March 2010. And it has been easy for hospitals and other health care providers to become fixated on the reform drama that is currently playing out in the halls of Congress, and in ballot boxes and federal courtrooms around the country, all the while scrambling to comply with the law's many provisions scheduled to phase-in over the next several years.

Consequently, many health care providers, understandably, have lost sight of another significant change in the industry that has been afoot since mid-2009 ' the imposition of affirmative action laws and regulations on hospitals and other health care providers that are considered federal government contractors or subcontractors. Government contractor or subcontractor status has far-reaching implications and potentially dire consequences for health care providers ' subjecting them to close government scrutiny of their employment practices, and where they are
not in compliance with their affirmative action obligations, the possibility of significant financial liability, among other things, for unsuspecting violations of those obligations.

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