Is a contract between a company and HCO for the sale/loan/rental or placement of capital equipment, which includes a provision pertaining to the purchase of consumables/disposables associated with the equipment is permitted?

  • Home
  • /
  • Knowledgebase
  • /
  • Medical Device Code
  • /
  • Is a contract between a company and HCO for the sale/loan/rental or placement of capital equipment, which includes a provision pertaining to the purchase of consumables/disposables associated with the equipment is permitted?

Yes, this is permitted provided the consumables are used to cross-merchandise the capital equipment in a manner which is defensible and fair. The sale, loan/rental or placement of equipment with a HCP, where the contract between the member and the HCP includes the purchase of consumables / disposables associated with the equipment, are subject to the following provisions:

  • HCPSA’s Guidelines for Good Practice – Booklet 11, item 3.6 Technological Equipment as applicable to HCPs:
    • HCPs shall only own and use technological equipment if it forms an integral part of their scope of the profession and practice and on condition that the HCP concerned has received appropriate training in using and managing such equipment.
    • HCPs shall not over-use equipment for procedures, tests and other applications that are not indicated, scientific or based on evidence. This constitutes over-servicing and is prohibited.
    • HCPs shall not use technological equipment, healthcare products or devices for profiteering and must refrain from charging patients fees for the use of such products or devices that are not market related.
  • The consumables are used to cross-merchandise the capital equipment in a manner which is defensible and fair.
  • The consumables relate to the specific piece of capital equipment being financed by means of the purchase of the consumables and is defensible in terms of the provisions of the National Credit Act.
  • The placement of equipment agreement should be in writing and, in cases of valid complaints, made available as per the complaints handling process in Part 2: Dealing with infringements of the Code.

In the case of equipment licensed with the Radiation Board, such equipment may only be loaned or placed as stipulated in the product license as issued by the Radiation Board.

Related Knowledge Base Posts