Answer

The Hospital Service District is required to follow the requirements of R.S. 38:2212.1 for purchases of materials and supplies. The Hospital Service District may, however, opt to adopt the Procurement Code found in R.S. 39:1551, et seq. and purchase from the state bid list through the Office of State Purchasing. The Hospital Service District may also utilize the provisions of R.S. 38:2212.1(G) or (H) provided that the provisions of the statute are followed and sufficiently documented. R.S. 38:2212.1 (G) and (H) provide alternative means of procurement when hospital service districts purchase from qualified group purchasing organizations. Qualified group purchasing organizations are defined in R.S. 38:2212.1(G)(3) as organizations, whether for profit or not for profit, which has contracts for the sale of materials and supplies with at least fifteen (15) hospitals in the United States. Neither R.S. 38:2212.1 (G) nor R.S. 38:2212.1(H) applies unless the vendor is a qualified group purchasing organization, so if the Hospital Service District wishes to utilize either exception they must document that the vendor utilized is a qualified group purchasing organization. R.S. 38:2212.1 (G)(1) provides that hospital service districts may enter into written agreements with one or more qualified group purchasing organizations for the purpose of obtaining bids for the purchase of materials and supplies by obtaining a price list for materials and supplies. The hospital service district should make sure to document all agreements in writing and should note that the statute requires that the price list must remain in effect for a minimum of three (3) months and is valid and binding on the qualified group purchasing organization. Once the written agreement is in place and the price list has been obtained the hospital service district may purchase from the price list(s). The hospital service district should purchase from the qualified group purchasing organization that submitted the lowest quoted price for the item. R.S. 38:2212.1(H) provides that the commissioners, governing board, or governing authority of any hospital owned or operated by a hospital service districts may authorize by resolution the participation in or the purchasing from a qualified group purchasing organization for the purchase of supplies and materials, without need for the written agreement as provided for in R.S. 38:2212.1(G)(1), if the authority can show that such participation or purchase would affect the economic situation or efficiency of operations of the hospital in a positive manner. The hospital service district should be sure to document such positive effect. The statute provides that if the total price of items to be purchased from the qualified group purchasing organization is less than the total price of those items purchased from the state bid list, then the positive affect will be presumed to exist. Louisiana Legislative Auditor website: 05/29/2025 03:50:09 AM