Insights
Andrea Kirshenbaum and David Renner Analyze "Pay-Per-Visit" Litigation Risks for Home Health Care Organizations in June 2015 AHLA Newsletter on June 24
In the June 2015 issue of the American Health Lawyers Association's (AHLA) Labor & Employment Newsletter, Employment & Employee Relations Principal Andrea M. Kirshenbaum and Associate David E. Renner look at the pay practice used by many home health organizations for exempt health home health workers - “Pay Per-Visit” (PPV).
In discussing the PPV model, the authors note that, "While the Fair Labor Standards Act (FLSA), the U.S. Department of Labor (DOL) regulations, and many states’ wage and hour laws permit payment on a fee basis under certain circumstances, the hurdles to satisfy the fee basis requirements are high, and if not fully satisfied, can create substantial litigation risk."
They go on to examine the litigation risks presented by the PPV model, and explain that, "while the PPV model remains a viable option for home health care organizations seeking to control costs, organizations must remain vigilant in their efforts to comply with the web of regulatory requirements while simultaneously being aware of the developing litigation landscape in this area."