German court prohibits GmbH business model with doctors in the field of medical cannabis

Source: The German Cannabis Business Association

 

09/25/2024 | The Regional Court of Frankfurt am Main has prohibited a limited liability company that described itself as “Germany’s leading platform for therapy with medical cannabis” from cooperating with doctors, according to the Hesse Medical Association. The GmbH had concluded contracts with doctors who undertook to present their work and take on administrative tasks. In return, the GmbH received a share of 60 to 79 percent of the doctors’ liquidation.

The court found that this business model violated several provisions of the model professional code for doctors. Doctors are not allowed to take instructions from non-doctors in order to maintain their independence. The GmbH gave the impression that contact with doctors was being arranged specifically to prescribe cannabis, which creates an unacceptable expectation.

In addition, the practice of outpatient medical activity is tied to an establishment. As the doctors were only available to a limited extent, they did not meet the requirements for a branch. The retained portion of the fee was also regarded as an inadmissible agency commission.

The ruling is not yet legally binding, but sets important limits for the cooperation of doctors with third parties and strengthens trust in medical independence in the healthcare sector.

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