Application for membership in River Valley Pediatricians, Inc. (“RVPI”) requires filling out both the RVPI Membership Enrollment Form and the Group Purchasing Organization Agreement. The Enrollment Form is an acknowledgement that the applicant meets the conditions of membership. The GPO Agreement explains the following:
River Valley Pediatricians, Inc. has entered into agreements with a number of manufacturers and suppliers under which they supply their products at a discount. Some vendors pay RVPI an administrative fee; those fees are based on the volume and value of purchases of those products by our member Practices. In order to comply with U. S. Department of Health & Human Services regulations for group purchasing organizations RVPI requires a written agreement with each physician practice that describes the administrative fees RVPI may receive from its vendors. If the administrative fees are fixed at 3% or less of purchases, then the agreement need only say so. If, however, the administrative fees are not fixed at 3% or less, then the agreement must spell out the maximum amount (or the formula).