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Under its nonprofit discount a hospital pharmacy purchases prescription drugs at 50% less than community pharmacies. Pursuant to the Portland Retail Druggist decision, which of the following would not be a permissible use by the hospital of these prescription

drugs?

a) Dispensing and selling the drugs to inpatients

b) Dispensing and selling the drugs to hospital employees

c) Selling the drugs to community pharmacies

User BradzTech
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Final answer:

Selling prescription drugs to community pharmacies would not be a permissible use for a hospital pharmacy receiving a nonprofit discount, as it would go against the intent of offering affordable health care through non-profit organizations, and such action would be considered a commercial resale activity.

Step-by-step explanation:

The Portland Retail Druggist decision pertains to the restrictions placed on entities eligible for nonprofit discounts on prescription drugs and how they can use them.

According to the question, a hospital pharmacy is purchasing prescription drugs at 50% less than community pharmacies. The permissible uses would likely include dispensing and selling the drugs to inpatients and hospital employees who are part of the hospital's care ecosystem. However, selling the drugs to community pharmacies would not be a permissible use because it would extend beyond their internal use and enter the realm of commercial resale, contrary to the intention of the discount, which is to support nonprofit entities like a nonprofit health organization, a private hospital, or a governmental agency like Health and Social Services in providing affordable healthcare.

This discount is designed to help such entities serve their direct beneficiaries, like inpatients and potentially employees, but not to enter into competition with community pharmacies or act as wholesale distributor.

User Pavel Hodek
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