Law360 Quotes Scott Heimberg on Potential Risks for Healthcare Companies Seeking COVID Relief Government Contracts
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Law360 has quoted Akin Gump government contracts partner Scott Heimberg in its article “Flood Of Medical Funds May Hold Risks For New Contractors,” regarding the potential issues healthcare companies may face as they seek to secure financial relief contracts with the U.S. government for the first time during the COVID-19 pandemic.
According to the article, federal contracts comprise several caveats that are not applied in commercial contracts. Heimberg said that while those he has reviewed have been “typical government contract clauses,” companies new to contracting with the government should be highly aware of these clauses, as there may be significant repercussions for those that do not comply with the government’s restrictions, including intensive audits and years-long False Claims Act whistleblower suits.
Heimberg added, “[Nontraditional] government contractors may have a rude awakening down the line after the crisis passes and audits take place or whistleblowers crop up, discovering that they have those obligations and they may say, 'I don't want to do this anymore. I helped out and I did my part and I am done and I'm going to return to the commercial marketplace and stay away from federal contracting.'"
