On August 13, 2018, President Trump signed into law the National Defense Authorization Act (NDAA) of 2019. While the annual NDAAs are tracked, analyzed, and picked apart with great care by the federal contracting community, the health care industry typically pays them little mind. But ignoring the 2019 NDAA would be a big mistake, because tucked within its more than 1,000 sections is one that will have a significant impact on many health care industry players. It’s known as Section 889.

Section 889 has two key subsections:

• Effective August 2019, Subsection A prohibits the federal government from purchasing products incorporating and services using Chinese technology produced by Huawei Technologies Company or ZTE Corporation (as well as three other Chinese companies).

• Effective August 2020, Subsection B prohibits the federal government from contracting with an entity that uses products or services that incorporate or use covered technology, whether or not the products or services are used in the context of a federal contract.