Federal Circuit Clarifies Implied Duty of Good Faith and Fair Dealing
Client Alert | less than 1 min read | 02.19.14
In an important decision clarifying the implied duty of good faith and fair dealing, the Federal Circuit in Metcalf Constr. Co. v. United States (Feb. 11, 2014) held that specifically targeted conduct is not required to prove a breach and rejected the government's assertion that violation of an express provision of the contract is a prerequisite to liability, while observing that the scope of the duty depends on the context of the particular contract and its "contemplated value." The court also vacated the judgment for the government on the ground that the contractor was not to bear the risk of error in the government's affirmative representations made in pre-bid documents.
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CMS Proposes New Payment Policy for IOPOs and HCLs
In keeping with ongoing efforts to intensify regulatory oversight of organ procurement organizations (OPOs) and curtail improper spending within federal health programs, the Centers for Medicare & Medicaid Services (CMS) recently issued a proposed rule that would, among other adjustments, align Medicare payment policies for non-renal organs to be consistent with those currently applicable to kidneys. If enacted as drafted, this latest rule could have a direct impact on the financial stability of OPOs and histocompatibility laboratories (HCL) at a time when such organizations face increasing pressure to meet CMS’s new outcome measures — or else face non-renewal or decertification later this year.
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