3

1 paragraph, but such term does not include any device or

3 (c) The term "device" means any instrument, ap4 paratus, or contrivance intended (1) for use in the diagnosis, 5 cure, mitigation, treatment, or prevention of disease in man, 6 6 or (2) to affect the structure or any function of the body 7 of man, but such term does not include glasses or lenses

8 intended for the correction of vision.

9 (d) The term “pharmacy” means an office, pharmacy, 10 drugstore, or other establishment which engages in the 11 sale of drugs or devices at retail. 12

(e) The term "community pharmacy", when used in 13 relation to a medical practitioner, means a pharmacy situated 14 within 10 miles of any place at which such medical practi15 tioner maintains an office for professional practice. 16 (f) The term "lessor's interest", when used in relation

17

to a medical practitioner, incans any pecuniary interest of 18 such medical practitioner as a lessor of real property occupied 19 by a lessee engaged in the operation of a community phar20

macy under a lease which provides for the payment by the 21 lessee of a rental which (1) is based in whole or in part

22

upon the income of the lessee derived from the sale or fur

23 nishing of drugs, devices, or drugs and devices, or (2) 24 exceeds in amount the rental customarily charged for com

5

1

legal or beneficial interest in any drug company, provided it shall not be unlawful for a medical practitioner

2

3

to acquire or own such an interest solely for investment,

and the acquisition of an interest which is publicly offered to the general public shall be prima facie evidence of its acquisition solely for investment; and

(c) for a medical practitioner to solicit or to knowingly receive from a drug company, or for a drug company to pay or to promise to pay to a medical practitioner, any rebate, refund, discount, commisssion, or

8

9

10

11

other valuable consideration for, on account of, or based

12

upon the volume of wholesale or retail sales at any place of drugs manufactured, processed, packaged, or

13

14

distributed by the company.

15

L’ROHIBITION OF DISPENSING OF DRUGS AND DEVICES BY

16

MEDICAL PRACTITIONERS

17

SEC. 5. Except as otherwise provided by this section,

18 it shall be unlawful for a medical practitioner to engage

19

20

21

directly or indirectly in the dispensing of drugs or devices. Nothing in this subsection shall prohibit

(1) a medical practitioner from furnishing a patient any drug or device in an emergency;

(2) the administration of a unit dose of a drug to

22

23

24

a patient by or under the supervision of such medical

6

1

2

(3) dispensing a drug or device to a patient by a medical practitioner where there is no community pharmacy available to the patient; or

3

4

(4) the dispensing occasionally, but not as a usual

8 SEC. 6. (a) It shall be unlawful for a medical practi9 tioner to own directly or indirectly, a legal, beneficial, or 10 lessor's interest in a community pharmacy. Nothing in this 11 subsection shall prohibit a medical practitioner from dis12

pensing a drug or device which he is permitted to dispense

13 under section 5.

14

(b) It shall be unlawful for a medical practitioner 15 directly or indirectly to solicit or to knowingly receive from a 16 community pharmacy, or for a community pharmacy know17

ingly to pay or to promise to pay to a medical practitioner any rebate, refund, discount, commission, or other valuable

18

19 consideration for, on account of, or based upon income re

20 ceived or resulting from the sale or furnishing by such com21

munity pharmacy of drugs or devices to patients of any 22 medical practitioner.

23

FEDERAL FINANCIAL PARTICIPATION IN DRUG

24

EXPENDITURES

25

SEC. 7. Federal financial participation shall not be avail

26 able in expenditures for drugs or devices dispensed in con