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Title: Section 87.40 - Purchases and contracts

87.40 Purchases and contracts.

(a) Purchases and contracts for hospital materials and services shall be limited to those items needed for hospital operation. Such purchases and contracts shall be subject to budgetary limitations except where the expenditure is necessary to protect life or property from imminent danger.

(b) Purchases and contracts shall be awarded by a hospital only after every reasonable effort has been made to obtain the lowest possible cost commitment consistent with prudent operation. Substantial construction contracts, as defined in the State Hospital Code (10 NYCRR Part 710) shall require verification of cost by competitive bidding acceptable to the State Department of Health.

(c) Prior to permitting any supplier or contractor to perform, a hospital shall require the contractor to submit satisfactory evidence of any insurance coverages and performance and payment bonds that may be required by the contract or purchase documents.


VOLUME A-2 (Title 10)