Does “borrowed servant” doctrine protect staffing agency?
Does the “borrowed servant” doctrine protect a healthcare staffing agency from a claim of negligence brought by the survivors of a nursing home resident who allegedly died because of negligent care by direct service workers supplied by the agency? Healthcare Financial Advisors, a for-profit company that provided financial and accounting services to several nursing homes operated by a for-profit general partner of limited partnerships, formed a nonprofit corporation to be exempt from tort liability in operating the homes and thus reduce its insurance costs. It then formed Healthcare Staffing Associates to lease direct-care staff to the homes and provide benefits to the employees who worked...
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