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Hospital Leaders Paid for Selling Advice

July 18, 2006

Executives at some of America’s biggest nonprofit hospitals are being rewarded with luxury trips and are often paid thousands of dollars to advise companies on how to best sell their drugs, medical devices, and financial services to hospitals, reports The New York Times.

Connecticut’s attorney general, Richard Blumenthal, is investigating whether executives who get the rewards steer business to suppliers who may not necessarily offer the hospitals the best deals in terms of price or quality, the newspaper said.

Hospital executives involved in the arrangements said they were simply trying to improve health-care products.