Lawful uses of drugs purchased at preferential prices

The issue of use of pharmaceuticals purchased at preferential prices by hospital pharmacies in competition with community pharmacies has received great attention in recent years. The U.S. Supreme Court has addressed such issues twice within the past 10 years. The statutory basis for the lawsuits is explained and the history and implications of the Supreme Court decisions are discussed, with emphasis on the various categories of permissible and impermissible uses under the court's decisions. Implications for the hospital pharmacy are described and discussed.