A Futile Limit On Online Auctions For Medical Supplies

By Stephen Sozio and Kristine Gallagher (May 17, 2017, 3:33 PM EDT) -- A federal district court in Connecticut recently held that an online auction service for the purchase of medical supplies violates the Anti-Kickback Statute. If the ruling holds and is accepted by other courts, it makes illegal a trend toward online auctions utilized by providers to reduce costs in the purchase of medical supplies and other items necessary for the delivery of health care. In our view, the ruling unnecessarily limits a means of reducing health care costs and is inconsistent with the spirit and language of the AKS, and should not be accepted by other courts....

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