Assume you are the compliance officer for Lakeside Hospital that is part of DEF Healthcare. Mary, the CNO, approaches you seeking guidance on a potential conflict-of-interest issue with one

Facts: Assume you are the compliance officer for Lakeside Hospital that is part of DEF Healthcare. Mary, the CNO, approaches you seeking guidance on a potential conflict-of-interest issue with one of her employees. Mary explains that one of Lakeside’s post-acute care nurses, Angela, wants to start a new company with a business partner, called NursesRGreat (NRG). NRG would provide respite care services to patients in the community who qualify for those services. For purposes of this assignment, assume respite care is providing temporary relief to primary caregivers for patients who are in a home setting.
SCOPE: All Company-affiliated facilities, including but not limited to, hospitals, ambulatory surgery centers, home health agencies, physician practices, service centers and all Corporate departments, Groups, Divisions and Markets. PURPOSE: To enable affected individuals to understand, identify, manage, and appropriately disclose actual, potential, or perceived conflicts of interest.
POLICY: Consistent with the Code of Conduct, no Company colleague may enter into any employment, transaction or other arrangement that may cause or be perceived to cause a conflict of interest. Affected individuals, as defined below, within 90 days such individual must review this policy and submit the Conflict of Interest Certification. At least annually thereafter, affected individuals must review the conflict-of-interest policy. Nothing in this policy prohibits a facility or the Corporate office from defining “affected individuals” to include more members of their staff than listed in the definition below.
Instructions: In responding to Mary, outline the legal guidance needed to whether or not Angela can proceed with her new venture based on the company’s policy?