Legal Question in Business Law in Maryland

Liability for Consulting Services

I am consulting for a company that manages Ambulatory Surgery Centers. My role is to assist with negotiating and establishing Health Insurance Payer contracts. These contracts require the Provider to be credentialed (State licensed, Medicare Certified, Accredited by approved accrediting bodies, Registered and approved by the State Medicaid Plan, and must have liability insurance coverage. I have repeatedly told Senior Management that they need these credentials in order to obtain contracts, but to date, they have not made my recommendations a priority. I am concerned that when the payers stop paying their claims because they haven't obtained these documents, they will somehow say they didn't know they were supposed to get them in order to bill and hold me liable for the lost revenue.

What can I do to protect myself?


Asked on 5/22/04, 3:06 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Liability for Consulting Services

Typically such liability is clear as to the parties under the contract for services. It appears that this is satisfied by what you say in your contract.

In order to protect yourself, I suggest you contact an attorney. You may have what is referred to as a "qui tam".

Qui tam continues to be a very effective and successful tool in combating government procurement and program fraud. Enhanced in 1986, this law has armed private citizens, who have independent and direct knowledge of fraud, with a method to prosecute government contractors, and others who are defrauding the Government. The person making the allegation is called a relator and he/she shares in the Government's recovery.

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Answered on 5/23/04, 10:47 am


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