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March 15, 2022   

Hospitals and Hospital System Boards Should Review Sole Source Procurement Policies and Procedures

This Bulletin is brought to you by AHLA’s Business Law and Governance and Hospitals and Health Systems Practice Groups.
  • March 15, 2022
  • Clifford Barnes , Epstein Becker & Green PC
  • Megan Robertson , Epstein Becker & Green PC

A hospital system’s sole source procurement of products and services provided by Board members that were not approved by the entire Board, or otherwise run through conflict of interest (COI) processes, caused the Maryland General Assembly to impose a prohibition against any sole source contracting for that state hospital system in 2019. Hospital Boards may want to review both their sole source contracting activities to ensure that they are consistent with their COI policy and the conflict policy itself to ensure that sole source agreements are required to be regularly reviewed.


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