The Department of Health and Human Services, in accordance with Section 224(h) of the Public Health Services (PHS) Act, 42 U.S.C. 223(h), (Section 233) has deemed Regence Health Network, Inc., its officers, directors, employees, and certain individual (not corporate) contractors to be employees of the United States effective June 30, 1993, for the purposes of medical malpractice liability. Therefore, individuals employed and credentialed by RHN within the scope of their employment (or contract for services) are thereby protected by the Federal Tort Claims Act and are immune from lawsuit so long as all requirements of Section 233 are met. The only remedy available to a plaintiff is to file a claim against the United States under the provisions of the Federal Tort Claims Act.
The Attorney General, through the Department of Justice, has the responsibility for the defense of the provider and/or organization for malpractice claims approved for FTCA coverage. FTCA Coverage includes the responsibility for payment to a plaintiff of any damages awarded as a result of malpractice judgment or as a result of a settlement approved by the Attorney General or his/her designee. FTCA coverage is comparable to an Occurrence malpractice policy and with no monetary coverage limits.
In addition, 42 U.S.C. Sections (j) and (m) require hospitals and managed care plans to accept coverage under the FTCA as meeting their malpractice requirements or risk loss of Medicare and Medicaid reimbursement.