This message comes from Don Orchard, who represents the UPAL physicians' group to which John Canning alluded and Dr. Hendricks belongs. He had an interesting comment about purchasing supplies from hospitals. > From: "Don Orchard" <> > Subject: Re: What we are paying in supplies > Date: Mon, 16 Aug 1999 09:05:00 -0500 > > I was copied on your weekend conversation re: the purchase of med-surg > supplies. FYI, there are certain federal laws which do make it virtually > impossible for hospitals to use their group purchasing leverage to purchase > supplies for physicians or to make available supplies for re-purchase by > physicians, unless the physicians are employee physicians. For example, > most hospitals are non-profit. It threatens the hospital's tax-exempt > status to provide anything of benefit (private inurement) to third parties. > There are also questions of violating anti-kickback, fraud and abuse and > self-referral regulations. In short, there are prohibitions that are > complex and require careful analysis. Group purchasing is another way UPAL > serves such a valuable purpose for its member physicians, when few, if any, > alternatives exist. -- Chip Hart * chip @ pcc.com Physicians's Computer Company * http://www.pcc.com/~chip 1 Main Street * Work:800-722-7708 Winooski, VT 05404 * Fax: 802-846-8178