Part of "Drug Purchasing" Scheme Revealed in April
TORONTO, May 14 /CNW/ -
Ontario is taking legal action against more pharmacies and wholesalers
that have been involved in a scheme where drug products were being sold
The Ministry of Health and Long-Term Care's Ontario Public Drug Programs
conducted audits at pharmacies, generic manufacturers and wholesalers after
finding discrepancies in the reporting of professional allowances paid and
received. Professional allowances are monies generic drug manufacturers pay
pharmacies for buying their prescription drug products.
The Ontario government:
- Has laid further provincial offence charges for providing false or
incomplete information or obstructing an inspector - against another
wholesaler and individual
- Has put another pharmacy on notice that their pharmacy subscription
agreements - which allows it to work within the Ontario Public Drug
Programs - may be terminated and suspension orders issued
- Is issuing demand letters that require three pharmacy groups to
provide information on professional allowances (these may be followed
by full-scale audits)
In April, the government took enforcement actions against a number of
pharmacies, generic manufacturers and wholesalers. Further audits are ongoing.
- Through changes made by Bill 102 to the legislation that governs
Ontario's publicly funded drug programs, the government is improving
patient access to prescription drugs, ensuring better value for money
spent on prescription drugs, strengthening the accountability within
the drug system, and ensuring that pharmacists are valued and
compensated for the important services they provide.
- This legislation, the Transparent Drug System for Patients Act, 2006,
made changes to the Ontario Drug Benefit Act (ODBA) and the Drug
Interchangeability and dispensing Fee Act (DIDFA).
- Under the Ontario Drug Benefit Act and the Drug Interchangeability
and Dispensing Fee Act:
- Drug manufacturers are required to report to the government, on a
biannual basis, the amount of professional allowances paid out to
- Pharmacies are required to report the amount of professional
allowances they have received.
- Pharmacies are required to report on how professional allowances
are spent, with the requirement that they must be used for direct
- Professional allowances are capped at 20 per cent for the Ontario
Drug Benefit plan (ODB) market.
- There is no cap for the private market, however, as with the ODB
market, these allowances must be used for activities outlined in
Read more about the enforcement actions
Read about the April announcement
Read about Ontario Public Drug Programs
Disponible en français
For further information:
For further information: Andrew Morrison, Ministry of Health and
Long-Term Care, (416) 314-6197