DOH asks drug stores to report erring suppliers

MANILA, Philippines - The Philippine Healthcare Associations of the Philippines (PHAP) yesterday said an inventory system is now in place to ensure rebates to drugstores and pharmacies in the implementation of the medicine price cut order on Aug. 15.

“Distributors have established procedures with drugstores and pharmacies to identify inventory levels at the end of business day of Aug. 14 so that corresponding rebates for price differences could be issued subsequently,” PHAP executive director Reinir Gloor said.

Gloor said PHAP’s voluntary program has committed the organization to support the medicine price cap program.

The Private Hospitals Association of the Philippines (PHAP) has urged the government to delay the implementation by six months to allow the disposal of their remaining stocks.

Hospital owners claimed there was no written assurance that pharmaceutical companies would give them rebates or would adjust the prices of medicine bought at current prices when the executive order signed by President Arroyo putting a price cap on most prescribed drugs takes effect on Aug. 15.

Under the EO, the prices of 43 drugs would be reduced up to 50 percent starting on Saturday. Small drugstores in the provinces, or those that do not have computerized inventory system, have until Sept. 15 to comply.

Dr. Robert So, chief of the National Drug Program of the Department of Health (DOH), assured drug outlets that they should not worry since pharmaceutical firms are bound to comply with the EO.

“It is there in the EO. It (issuance of rebate) is written very clear there. The EO mentioned it – the price difference as a result of the price reduction,” So said.

So added that drug outlets just have to “talk with their own suppliers” on how they would go about the rebate because the DOH could not meddle since they are private entities.

So also urged pharmacies to report to the DOH any concerned drug firm failing to comply with the EO.

So warned that violation of the EO is punishable with revocation of license to operate and/or a fine of P1 million if the extent of the offense would be categorized as profiteering.