From mobsters to managers. RIC0 (Racketeer Influenced and Corrupt Organizations Act) extends its reach beyond the...

The federal Racketeer influenced and Corrupt Organizations Act (RICO) was enacted in 1970 to combat the infiltration of organized crime into legitimate businesses operating in interstate commerce. During the first 10 years of its existence, the statute was applied almost exclusively in charges requiring criminal penalties. Section 1964 of RICO, however, allows civil remedies for injuries resulting from certain defined criminal activities. These civil remedies authorize treble damages and a reasonable attorney's fee. The Supreme Court has upheld the extension of this law to apply to general business activities, including hospitals. Hospitals risk involvement in civil RICO litigation as they become increasingly active in alternative healthcare businesses--medical supply operations real estate ventures, etc.--that involve public participation and the sale of securities, partnership units, and other equity interests. A disgruntled investor in a failed venture may initiate litigation. Other areas where hospitals are vulnerable to RICO claims include medical staff grievances, involvement in health maintenance organizations, and profile protest activities. The RICO civil provisions contain five basic elements: injury, person, enterprise, pattern of racketeering activity, and interstate or foreign commerce. Basically, this means that any person injured by the unlawful conduct of a person who is employed by or associated with any enterprise that engages in a pattern of activity which affects interstate commerce is entitled to civil RICO damages.