2 1 sions by medical practitioners in connection with the supply2 ing of such products to patients, except under certain limited 3 circumstances, is inconsistent with the best interest of the 4 public health, denies consumers free access in an open market 5 to such products moving or having moved in interstate 6 commerce, and tends to induce unfair trade practices in con7 nection with trade in such products. 10 (a) The term "medical practitioner" means any person 11 licensed by any State, or by any professional association or 12 society under the law of any State, to engage in the practice 13 of medicine, osteopathy, chiropody, or podiatry, and in such practice to administer or prescribe drugs or devices, but 15 such term does not include any person engaged in practice 14 16 17 18 exclusively as an ophthalmologist, optometrist, homeopathic physician, dentist, or veterinarian. (b) The term "drug" means any article (1) recog19 nized in the official United States Pharmacopeia, the official 20 National Formulary, or in any supplement to such pharma 21 222 23 24 copeia or formulary, (2) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man, (3) intended to affect the structure or any function of the body of man, or (4) intended for use as a component of 25 any article described in clause (1), (2), or (3) of this 3 1 paragraph, but such term does not include any device or 2 3 any components of a device. (c) The term "device" means any instrument, ap 4 paratus, or contrivance intended (1) for use in the diagnosis, 5 cure, mitigation, treatment, or prevention of disease in man, 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 practitioner maintains an office for professional practice. 15 16 (f) The term "lessor's interest", when used in relation 17 to a medical practitioner, means 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 fur23 nishing of drugs, devices, or drugs and devices, or (2) 24 exceeds in amount the rental customarily charged for com 4 1 parable facilities in the vicinity of the place at which such 2 real property is situated. 3 (g) The term "drug company" means any person 4 engaged in the manufacturing, processing, packaging, or dis5 tribution of drugs, but such term does not include a pharmacy. 6 (h) The term "person" means any individual, and any 7 partnership, firm, corporation, association, or other business 8 entity. 9 (i) The term "State" means any State of the United 10 States or any political subdivision thereof, the District of 11 Columbia, the Commonwealth of Puerto Rico, and any ter12 ritory of the United States. PROHIBITION OF PECUNIARY INTERESTS IN DRUG 13 COMPANIES SEC. 4. It shall be unlawful (a) for a drug company to give or sell to a medical practitioner any legal or beneficial interest in the company or in the income thereof with the intent or for the purpose of inducing such medical practitioner to prescribe to his patients the drugs of the company. The giving or selling of such interest by the company to a medi cal practitioner without such interest first having been publicly offered to the general public shall be prima facie evidence of such intent or purpose; (b) for a medical practitioner to acquire or own a 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 legal or beneficial interest in any drug company, provided it shall not be unlawful for a medical practitioner 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 other valuable consideration for, on account of, or based upon the volume of wholesale or retail sales at any place of drugs manufactured, processed, packaged, or distributed by the company. PROHIBITION OF DISPENSING OF DRUGS AND DEVICES BY MEDICAL PRACTITIONERS SEC. 5. Except as otherwise provided by this section, 18 it shall be unlawful for a medical practitioner to engage 19 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 a patient by or under the supervision of such medical practitioner; 1 2 3 4 5 6 (3) dispensing a drug or device to a patient by a medical practitioner where there is no community pharmacy available to the patient; or (4) the dispensing occasionally, but not as a usual course of doing business by a medical practitioner. 6 PROHIBITION OF PECUNIARY INTERESTS IN PHARMACIES 7 8 BY MEDICAL PRACTITIONERS 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 18 any rebate, refund, discount, commission, or other valuable 19 consideration for, on account of, or based upon income re20 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 24 25 FEDERAL FINANCIAL PARTICIPATION IN DRUG EXPENDITURES SEC. 7. Federal financial participation shall not be avail 26 able in expenditures for drugs or devices dispensed in con |