No buying overpriced medicine, Pampanga government told
>> Monday, September 19, 2016
SAN FERNANDO CITY, Pampanga -- The Commission
on Audit (COA) has advised the provincial government here to stop buying
overpriced medicine through consignment.
“The price difference
between the consignment order’s unit cost and the prevailing market price
ranged from 9.40 to 689.82 percent, contradicting the purpose of
institutionalizing the consignment system... as stated in Sangguniang
Panlalawigan Ordinance 463,” state auditors said in a 2015 report released
recently, citing 32 drugs procured through consignment last year.
Records show that the
provincial government makes consignment arrangements in procuring medicine for
its 11 district hospitals.
COA said Department
of Health Administrative Order 2006-039 states that the price of consigned
goods should not be higher than the selling price of essential generic drugs
and medicine procured through the DOH-Philippine International Trading Corp.
parallel importation scheme or the prevailing market price, whichever is lower.
The price of
consigned medicine should be lower even with markups by hospitals compared to
private outlets, the order states.
“This situation may
provide healthy competition with private retailers and may prompt them to
lower drug prices as well,” state auditors said.
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