What is the Federal Tort Claims Act (FTCA) and what coverage do we have?
The FTCA was put in place by two laws enacted in 1992 and 1995, these made it permissable for Federally Qualified Health Centers to be “deemed” as federal government employees. This gave them fairly broad immunity and indemnification (by the government) for lawsuits stemming from health care services within the scope of the of the center’s approved project. The insurance savings from this reduction in medical malpractice costs is expected to be invested in  risk management and quality improvement activities for the deemed organization.

Who has coverage under the FTCA?
The center’s coverage is extended to it’s employees for approved health care services. Many third party contractors are covered as well as some volunteers, subject to HRSA approval.

What claims are covered under the FTCA?
Medical Malpractice is covered.

What is not covered under the FTCA?
• Contracted health care providers who are not certified or licensed
• Any indemnification of third parties that is required by contract
• Anyone “moonlighting”
• Corporations, including their employees, who provide contracted services
• Any activities that are not approved or listed under the scope of coverage
• Third party or outside peer review
• Non-medical care liability – allegations of sexual abuse, slips and falls by non-patients
• Non-primary care doctors contracted less than thirty two hours a week
• Volunteers are excluded unless approved individually and every year
• Directors or Officers of the clinic for any non-malpractice claims
• Employment practice claims
• Any property coverage

What triggers coverage?
The FTCA operates as occurrence coverage, meaning any events that happen while FTCA coverage is in place are covered no matter when the claim is brought.

Gap or Wrap-Around Coverage operates as claims made, see the video below for an explanation.

Is my FTCA coverage good?
The coverage provided by the FTCA is very helpful for standard claims and it doesn’t cost a health center anything. However, there are major gaps in the coverage that can be filled inexpensively by an expert broker. Contact us today for a free consultation.

What coverage do executives of a health center need?
Our article on top executive liability exposures lists the most common, our brokers can provide an individual analysis.

What happens if healthcare reform eliminates the need for section 330 funding for clinics or cost cutting ends the FTCA program?
The FTCA program was made a permanent program with no sunset component in 1995. Because it is relied on so heavily by FQHC’s any change in the program would hopefully allow for a ordered transition back to the commercial insurance market.

Which insurance companies do you work with?
As an independent specialist broker we work with over a dozen companies to secure the most cost effective and broadest gap/wrap around coverage.