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Executive Order on DEI Programs: Implications for Healthcare and False Claims Act Risks

By Denise Barnes on February 13, 2025
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The Trump administration’s recent executive order targeting diversity, equity, and inclusion (DEI) programs is reshaping the landscape for healthcare providers, with potential legal and regulatory implications that are still unfolding.

In a recent article for Law360 Healthcare Authority, I provided insights on the order and its broader impact, particularly in light of the Supreme Court’s 2023 ruling that prohibits the consideration of race in higher education admissions.

The executive order raises significant questions about what it means to promote or engage in a DEI program that could potentially violate nondiscrimination laws. While the administration may adopt an aggressive approach in enforcing this order, it’s important to consider whether that stance aligns with constitutional principles.

One area of concern I highlighted is the potential impact on federal clinical trials. The FDA has recently made strides to increase diversity in medical trials, aiming to ensure that healthcare innovations are inclusive of all populations. However, this new executive order may challenge that focus and create additional hurdles for clinical trial diversity initiatives.

For a deeper dive into these issues, you can read the full article, “Trump’s Anti-DEI Push Poses New FCA Risks For Healthcare,” published on February 11 by Law360 Healthcare Authority. Additionally, I co-authored a related piece with Scott Gallisdorfer, “What Trump Admin’s Anti-DEI Push Means for FCA Claims,” which is also available online.

Photo of Denise Barnes Denise Barnes

Denise Barnes counsels clients in high-stakes matters related to fraud allegations, including in healthcare, federal contract procurement, and securities and financial services. A former trial attorney with the U.S. Department of Justice (DOJ), she has extensive experience handling issues related to compliance, white-collar…

Denise Barnes counsels clients in high-stakes matters related to fraud allegations, including in healthcare, federal contract procurement, and securities and financial services. A former trial attorney with the U.S. Department of Justice (DOJ), she has extensive experience handling issues related to compliance, white-collar and regulatory investigations, and complex commercial litigation. Denise represents businesses in public and non-public investigations, regulatory inquiries, and proceedings involving federal and state agencies. She frequently assists clients navigating government investigations related to allegations arising under the False Claims Act (FCA), Anti-Kickback Statute (AKS), Stark Law, and Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). Notably, during her tenure at the DOJ, she spearheaded numerous multi-district investigations that resulted in over $2.7 billion in recoveries for federal taxpayers.

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  • Posted in:
    Health Care
  • Blog:
    Inside the False Claims Act
  • Organization:
    Bass, Berry & Sims PLC
  • Article: View Original Source

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