PAGE: 6 of 6 / REPLACES POLICY DATED: 5/1/00, 12/18/00; 8/15/01; 1/1/02; 4/15/03, 8/1/04, 8/1/08, 1/1/09
EFFECTIVE DATE: September 1, 2012 / REFERENCE NUMBER: MM.002
APPROVED BY: Ethics and Compliance Policy Committee
SCOPE: All Company-affiliated facilities, including but not limited to, hospitals, ambulatory surgery centers, home health agencies, physician practices, service centers, and all Corporate Departments, Groups and Divisions and HealthTrust Purchasing Group, and particularly the following Departments and individuals:
Materials Management ReimbursementEducation and Training Controllers
Pharmacy
PURPOSE:1. To articulate the Company’s expectations of Vendors in their interactions with the Company and its colleagues.
2. To establish parameters for seeking and accepting funds from Vendors for conferences, educational programs and other events.
3. To make clear that, other than as permitted herein, the Company does not wish to place extra-contractual demands on Vendors.
POLICY:
1. The Company expects Vendors to respect the Company’s Code of Conduct and policies and procedures. It also encourages Vendors to commit in contracts with the Company and any of its affiliates to adhere to the provisions of the Company’s Code of Conduct and policies and procedures which address Vendor interaction with Company colleagues and facilities.
2. The Company will accept Vendor funding for certain events (e.g., educational events, charitable events, trade shows and conferences) only as outlined below, provided that the Vendor’s funding and/or participation is not inappropriately offered by the Vendor or solicited by the Company.
3. In no event is any request for, or acceptance of, a Vendor contribution to be connected in any manner, implied or express, with the conduct of business with the Vendor.
4. The Company goal is to have discounts, rebates, administrative fees (GPO Fees), and any other payments received from Vendors to be structured to comply with the Discount Safe Harbor Regulations and the GPO Safe Harbor Regulations, to the extent practical.
5. Any exceptions to this policy must be approved in writing by the facility’s Division President and the SVP and Chief Ethics and Compliance Officer.
DEFINITIONS:
Colleague, for purposes of this policy, is defined as any employee of the Company or any of its affiliates.
Vendor, For purposes of this policy, is defined as an entity doing or seeking to do business with HealthTrust Purchasing Group (HPG), the Company, or any of its affiliated facilities.
PROCEDURE:
A. Expectations of Vendors
1. The Company expects its Vendors to be familiar with our Code of Conduct and policies and procedures which relate to our colleagues’ interaction with Vendors and other business associates, including but not limited to our Business Courtesies to Potential Referral Sources Policy (EC.005), Entertainment Policy (EC.006), and Vendor-Promotional Training, Business Associate-Sponsored Seminars and Honoraria Policy (EC.007), Gifts Policy (EC.023), Education Funding From Vendors Policy, (MM.004), and Research Grant Funding from Vendors Policy (MM.005), and to abide by those standards and policies.a. The Company provides Vendors with a brochure which sets forth HPG’s and the Company’s commitment to high ethical standards. The document also includes reference to the relevant policies and their website addresses.
b. The HPG’s website, located at http://www.healthtrustpg.com/ contains additional information for Vendors regarding the Company’s commitment to ethical business practices and its expectations of Vendors with respect to their business practices.
2. The Company encourages its Vendors to have an ethics and compliance program, a code of conduct, or other policies and programs demonstrating their commitment to ethical business practices.
B. Permissible Arrangements for Vendor Funding of Events
The only permissible arrangements for Vendor funding of events are those listed below unless an exception is approved in writing by the facility’s Division President and the SVP and Chief Ethics and Compliance Officer. Such events must also comply with Company policies, including the following: Non-Employed Physician Education Expenses (LL.010), and Providing Free and/or Discounted Training and Equipment to Referral Sources (LL.011). The fair market determination made pursuant to LL.010 and LL.011 should take into consideration the value of like training or equipment offered by other entities. The fair market value determination should not be reduced by Vendor funding.
1. Vendor Funded Educational Programsa. A Company-affiliated facility, including a Corporate Department, must not contract with a Vendor for goods and/or services and at the same time obligate Vendor to provide funding for educational programming in connection with its agreement to provide such goods and/or services. This is not intended to address programs to train colleagues and staff professionals on use of the Vendor’s goods and/or services.
b. Company-affiliated facilities, including a Corporate Department, may accept funds from Vendors to help underwrite the cost of educational programs sponsored at least in part by the facility, provided the facility follows the provisions of the Educational Funding from Vendors Policy (MM.004). Under no circumstances shall a decision to buy products and/or services from a particular Vendor be contingent upon a Vendor’s contribution to any education program.
c. For individual facilities receiving Vendor funds for Educational Events, the amount received must be offset against the cost of supplies by the particular facility. See the Educational Funding from Vendors Policy (MM.004) for a detailed explanation of the accounting required for receipt of these funds.
2. Research Grants
a. A Company-affiliated facility, including a Corporate Department, must not contract with a Vendor for goods and/or services and at the same time obligate Vendor to provide funding for research grants in connection with its agreement to provide such goods and/or services.
b. Company-affiliated facilities, including a Corporate Department, may accept funds from Vendors to help underwrite the cost of research grants sponsored at least in part by the facility provided facility follows the provisions of the Research Grant Funding From Vendors Policy (MM.005). Under no circumstances shall a decision to buy products and/or services from a particular Vendor be contingent upon a Vendor’s contribution to any research grant.
c. For individual facilities receiving Vendor funds for Research, the amount received must be offset against the cost of supplies by the particular facility. See the Research Grant Funding from Vendors Policy (MM.005) for a detailed explanation of the accounting required for receipt of these funds.
3. Gifts. A gift from a Vendor to a facility or Corporate Department is permissible provided such gift was not solicited and is not provided in connection with a decision to buy products and/or services from the Vendor. The amount of any gift received from a vendor will be offset against the cost of supplies by the particular facility. If the gift is received by a Division or the corporate office (or similar corporate subsidiary providing management or support services) and benefits a region or all facilities, the amount received by the Division or corporate office (or similar corporate subsidiary) will be allocated to the supply costs for all facilities within that Division, or all facilities nationally, respectively. This section pertains solely to gifts to a facility or Corporate Department and not to individual employees. Gifts to employees are addressed in the HCA and HPG Codes of Conduct.
4. Trade Shows, Conferences and Company Meetings. A facility or Corporate Department may permit Vendors to participate in events the facility or Corporate Department sponsors, such as trade shows, conferences for Company colleagues or Company meetings provided that the Vendors receive something of commensurate value in exchange for their contributions.
a. A Company-affiliated facility, including a Corporate Department, must not request any Vendor to subsidize meeting or conference activities. Vendors may purchase exhibit opportunities at an event the facility or Corporate Department is sponsoring provided that the facility charges all Vendors a like amount for like opportunities (except where appropriate, reduced prices may be charged Minority and Women Business Enterprises and small business). The facility or Corporate Department must use the money from the sale of exhibit opportunities to offset costs of any portion of the meeting and related activities.
b. A Vendor may provide materials or samples to be distributed at the facility-sponsored event provided it is clear that the materials or samples were supplied by the Vendor and provided that if given to a Company colleague the value does not exceed the $75 gift limit under the Code of Conduct and the Gifts Policy (EC.023).
c. A Vendor may fund a reception or meal at a meeting or conference provided such is done pursuant to an offer made by the Vendor and not pursuant to a request by the Company-affiliated facility and the per attendee cost does not exceed that stated in EC.006.
Example: An example of an appropriate method of permitting Vendors to participate in a Company meeting, conference or a trade show is: The Company is arranging a meeting of colleagues from several Company-affiliated facilities. The colleague organizing the event for the Company sends a letter to Vendors offering booth space at the meeting. The rate that the Company quotes the Vendors is the same for all Vendors for like space. The Company must use any amounts that exceed the costs of the exhibit space to offset costs of the meeting and related activities.
5. Charitable Functions. From time to time, Company-affiliated facilities are asked by charitable organizations to contribute to their organization or participate in a fundraising event of their organization, including asking or encouraging others outside the Company to participate in the charitable function.
An individual who has chief executive authority for a component of the Company (e.g., the CEO of a hospital, a Group President, the Corporate CEO) must approve the use of Company resources to support a charitable organization. Such support includes encouraging company colleagues as well as others outside the Company to participate in a charitable organization’s fundraising efforts. If the chief executive of the relevant component approves supporting a charitable organization including encouraging others outside the facility to become involved, the individual(s) designated by the chief executive of the relevant component to seek others’ support must send written invitations to participate to a diverse audience, comprised of vendors and non-vendors (e.g., community businesses). The written invitation must include a statement that any failure or refusal to contribute will not affect the recipient’s business relationship with the Company. Any funds a Vendor or other non-Company entity chooses to provide the charitable organization must be provided directly from the Vendor to the charitable organization (i.e., not through a Company-affiliated facility or Company colleague).
Examples of the proper way to address fundraising by charitable organizations includes:
· The local chapter of the American Heart Association is having its annual fundraising dinner. A Company hospital is invited to purchase 10 tickets (i.e., a table) at the dinner and is encouraged to invite other companies in the community to do the same. The hospital purchases the 10 tickets and distributes them to hospital colleagues. An individual authorized by the CEO sends a letter to Vendors and other businesses in the community encouraging them to support the American Heart Association dinner and provides the recipients with a contact number at the Association if they are interested in being involved.
· A department director at a Company hospital is a member of the Board of Directors of the local council of the Girl Scouts of America and wants to solicit contributions in its annual fundraising drive. The department director would like to use Company letterhead and a limited amount of administrative support to send a letter to community businesses seeking support for the Girls Scouts’ fundraiser. The department director is granted approval by the hospital CEO to use the facility’s letterhead and a limited amount of facility administrative support to do so.
C. Business Courtesies from Vendors
1. Vendor-Sponsored Entertainment. Consistent with the limits in the Company’s Entertainment Policy, EC.006, a Vendor may provide to Company colleagues entertainment that does not exceed $150 in value per event at an infrequent rate (generally meaning it does not exceed 3 times per year).2. Gifts. Consistent with the Company Code of Conduct and EC.023, a Vendor may provide to Company colleagues gifts that do not exceed a total of $75 in any one year.
3. Vendor Promotional Training. Consistent with the Company’s Vendor-Promotional Training and Business Associate-Sponsored Seminars Policy, EC.007, Vendors may provide training regarding new products or services it wishes to promote and associated travel, meal and entertainment costs provided the recipient’s supervisor and the facility Ethics and Compliance Officer determine that the substantive portions of such event outweigh any entertainment portions.
REFERENCES:
1. Company Code of Conduct
2. Business Courtesies to Potential Referral Sources Policy, EC.005
3. Entertainment Policy, EC.006
4. Vendor-Promotional Training, Business Associate-Sponsored Seminars and Honoraria Policy, EC.0075. Gifts Policy, EC.023
6. Non-Employed Physician Education Expenses Policy, LL.010
7. Providing Free and/or Discounted Training and Equipment to Referral Sources Policy, LL.0118. Physician Access to the Internet Policy, LL.026
9. Educational Funding from Vendors Policy, MM.00410. Research Grant Funding from Vendors Policy, MM.005
6/2012