Hospital Corporation of America and Subsidiaries - Page 47

                                       - 47 -                                         
          Patients do not choose which or how many medical supplies will be           
          used by the hospitals' staffs.  With a few exceptions, patients             
          receive no tangible item that they did not have before the                  
          rendition of the medical services because the medical supplies              
          generally are used and then discarded by the hospitals.                     
          Patients, moreover, generally do not acquire any rights over the            
          medical supplies used by the hospitals in the normal course of              
          the hospitals' operations of providing health care services.  We            
          conclude that for purposes of section 448(d)(5) the use of                  
          medical supplies is part of the medical services furnished                  
          patients and that the cost of those supplies is an incidental               
          cost of the health care services provided by the hospitals.  See            
          Potter v. James, 499 F. Supp. 607, 611 (M.D. Ala. 1980).                    
               We find support for our conclusion in Abbott Labs. v.                  
          Portland Retail Druggists Association, 425 U.S. at 14-15.  In               
          Abbott Labs. a group of commercial pharmacies brought suit under            
          the Robinson-Patman Price Discrimination Act (Robinson-Patman               
          Act), ch. 592, 49 Stat. 1526 (1936) (current version at 15 U.S.C.           
          secs. 13-13(b), 21(a) (1994)),19 against 12 manufacturers of                
          pharmaceutical products, alleging that the manufacturers sold               
          their products to hospitals at prices lower than the prices                 

          19  The Robinson-Patman Price Discrimination Act (Robinson-                 
          Patman Act), ch. 592, 49 Stat. 1526 (1936) (current version at 15           
          U.S.C. secs. 13-13(b), 21(a) (1994)), generally made it illegal             
          for a seller of merchandise to discriminate in price among                  
          different purchasers of like commodities.                                   





Page:  Previous  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  Next

Last modified: May 25, 2011