US Medical Suppliers Get Antitrust OK To Collaborate During COVID-19

The Justice Department said joint logistics operations among five American medical supply distributors to provide protective medical gear to virus hot spots does not violate antitrust law.

The Justice Department on Saturday announced that it will not challenge the joint logistics activities of five large American medical supplies manufacturers to accelerate the distribution of protective gear during the U.S. coronavirus outbreak.

McKesson, Owens & Minor, Cardinal Health, Medline Industries and Henry Schei on March 24 asked the Justice Department for an expedited antitrust legal review of their collaboration, including working together on international sourcing, logistics and airlift operations, during the health crisis.  

“These medical supplies distributors should be applauded for their efforts to both assist the United States in responding to the COVID-19 pandemic and stay within the bounds of antitrust law,” said U.S. Assistant Attorney General Makan Delrahim in a statement.

The medical supplies distribution collaboration is part of an emergency response plan initiated by the Federal Emergency Management Agency (FEMA) and U.S. Health and Human Services (HHS) Department in late March to rapidly address a national shortage of protective medical gear, such as face masks, gowns and gloves, as well as medicines, for hospitals dealing with highly contagious coronavirus patients.

Full Content: DOJ

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.