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STUDY SCENARIOS AND QUESTIONS 1. Through the power of its purchasing cooperative

ID: 136794 • Letter: S

Question

STUDY SCENARIOS AND QUESTIONS 1. Through the power of its purchasing cooperative and its nonprofit status, Mercy Hospital's pharmacy is able to purchase prescription drugs at much lower prices than community pharmacies. The direc- tor of the pharmacy decided to purchase more inventory than the pharmacy needed and to sell the excess inventory to community pharmacies. The hospital benefited by making extra profit and the pharmacies benefited by purchasing the drugs at less than their direct cost from the manufacturer. Explain if this activity is legal, and why. What if, instead of Mercy Hospital purchasing and reselling the drugs, it was a chain pharmacy? Would your answer change, and why? 2. Tom and Mary are a middle-aged couple who pay out of pocket nearly $2,000 per month for prescrip- tion drugs in your pharmacy. One of their friends told them that they could buy the drugs in Canada for about half that price. Tom and Mary ask you if they could legally buy the drugs in Canada. If so, they wonder how they could do this and ask if you could get the drugs for them and their friends. Provide Tom and Mary with accurate information on this subject.

Explanation / Answer

1.Mercy Hospital's pharmacy purchasing inventory more than their pharmacy needed,and sellig the extra inventory to community pharmacies for low cost. Here Mercy Hospital and community pharmacies are getting benefits together with this activity.
-If the Mercy Hopital pharmacy sells the drugs for more /less cost than the manufacturer cost ,they should have the legal contract to do it .so it is not legal.
-If they are selling it with legal contract from manufacturers for low cost without giving any trouble to community pharmacies is legal.
-As they are purchasing and selling to community pharmacies ,not for their pharmacies.if it is to their own pharmacies,it is called as chain pharmacy.

2.Purchasing drugs from Canada is not legal.
according to FDA (coverage of personal omportations) guidance for consumers ,
-Drugs can be purchased FROM Canada to treat serious conditions and no effective treatment iS available in the country.