Texas Hospital Can Sell Discounted Drugs, FTC Staff Says

Law360, New York (November 30, 2012, 5:51 PM EST) -- A Houston hospital system can sell discounted drugs to a local municipal emergency medical service unit in order to help deal with nationwide drug shortages without risking running afoul of federal antitrust law, Federal Trade Commission staff advised Friday.

Staff from the FTC Bureau of Competition told The Methodist Hospital System that selling certain critical discounted drugs to Baytown Emergency Medical Services would be considered a permissible humanitarian gesture under a federal law banning anti-competitive price discrimination.

The letter, which is not binding on the commission,...
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