Anti-Trust Laws and Competitive Conduct Cape Cod Healthcare (CCHC) is committed to full compliance with federal and state antitrust laws, which are designed to preserve fair competition and protect the competitive process. Free and open competition ensures patients receive better care and more efficient services at lower cost.
Suppliers and Competitors
Cape Cod Healthcare (CCHC) is committed to treating everyone it does business with honestly and fairly.
• No Misrepresentations: Never misrepresent CCHC’s business, services or practices. Correct misunderstandings promptly. • Fair Comparisons: Ensure that any comparisons with competitors are accurate and fair. • Cost and Pricing Data: When disclosure is required by law, provide current, accurate and complete cost or pricing information. • Contract Proposals and Negotiations: All data used in proposals, negotiations or shared with supervisors, employees, customers or suppliers must be accurate, complete and relevant.
(A) Physicians • Non-employed physicians should consult their own legal counsel before engaging in any activity that could be construed as anti-competitive. • All physicians practicing within CCHC are expected to comply with antitrust laws at all times. (B) Employees • Employees, including employed physicians, must comply fully with antitrust laws in carrying out CCHC’s business. • Violations can result in substantial penalties, including fines and imprisonment, imposed on both CCHC and individuals. (C) Examples of Potentially Anti-Competitive Conduct Certain agreements or conduct that restrict competition may be illegal, including: • Price fixing or agreements to divide markets. • Setting predatory prices to drive competitors out of business. • Boycotts or agreements with suppliers/distributors not to deal with competitors. • Conditioning the sale or lease of one product on another (tying/bundling). • Reciprocal dealing arrangements. Employees must consult and obtain prior written approval from the Chief Compliance Officer or Chief Legal Officer before considering any arrangement that could raise antitrust concerns.
Business Conduct Guidelines • Do not suggest boycotts or refusals to deal with competitors, suppliers, payors or contractors. • Termination of long-time suppliers or payors must be reviewed in advance with Compliance or Legal. • Competitor information should be obtained only through proper, publicly available channels—not directly from competitors or through improper means. • Avoid discussing pricing, payor lists, costs, profits, market shares, distribution practices or other proprietary information with competitors. • If a competitor raises such topics, object immediately, end the discussion and report the incident to the Chief Compliance Officer or Chief Legal Officer.
Physician Recruitment
• Recruiting and retaining physicians at Cape Cod Healthcare (CCHC) requires strict compliance with applicable laws, including the Anti-Kickback Statute , the Stark Law and IRS rules governing the tax-exempt status of CCHC and its affiliates. • Written Agreements: All recruitment packages and commitments must be documented in writing and consistent with CCHC’s established guidelines and policies. • Legal Review: New or unique recruitment arrangements must be reviewed and approved in writing by the Chief Compliance Officer and/or Chief Legal Officer before becoming binding. • Acceptable Support: Support for new physicians is permissible if: - There is a documented need for the physician’s specialty in CCHC’s service area. - Compensation is reasonable and consistent with fair market value. - Support is provided to encourage relocation, not tied to referral volume or value. • Income Guarantees: These present special compliance issues and must be reviewed and approved in writing by the Chief Legal Officer. • Employed Physicians: Compensation arrangements must remain consistent with fair market value. For highly compensated individu- als, terms must be reviewed and approved by the Compensation Committee of the Board of Trustees .
5 | Cape Cod Healthcare
Code of Conduct | 6
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