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Executive Officer Communiqués
Notice from the Executive Officer
February 21, 2007
Reporting Framework for Professional Allowances
In follow-up to my previous notice dated December 18, 2006, I am writing to provide you with an update on the development of a reporting framework for professional allowances. Pursuant to s.13.1 of the Ontario Drug Benefit Act (ODBA) and the Code of Conduct as set out in the regulations under the ODBA and Drug Interchangeability and Dispensing Fee Act (DIDFA), manufacturers and pharmacies are required to report on specific information relating to the payment, receipt and use of professional allowances. This information is required to be submitted to, and will be retained by, the ministry for audit purposes.
This bulletin is the first of several communications, and is intended to provide an overview of the reporting framework including the type of information that needs to be collected by manufacturers and pharmacies to support the reporting requirements. The ministry will provide more detailed information to stakeholders over the next two months about the framework, and intends to hold information sessions beginning in late March.
Overview of reporting framework
Information to be submitted by manufacturers
Manufacturers are required to retain any related financial and accounting documentation that may be needed as part of the ministry’s audit process. Two senior officers of the company or the manufacturer’s auditors are required to certify that the information reported to the ministry is complete and accurate.
Information to be submitted by pharmacies
Please note that the reporting framework requires pharmacies to record actual costs for some activities; for other activities, the framework assigns a “standard” cost to that activity and does not require the pharmacist to track the actual costs for an activity. For example:
Pharmacists only need to record the number of times they perform a patient counselling activity or prepare compliance packaging. Pharmacists are not required to estimate the cost of that activity; rather, once the number of times they perform an activity is inputted into the system, the framework automatically calculates a “standard” for those activities.
Please note that “patient counselling activities” are activities beyond the standards of care, as defined by the Ontario College of Pharmacists, for dispensing a prescription. For example, patients may require additional teaching to take their medication properly (e.g., aerochamber teaching).Education events; Clinic days; Disease management activities
Pharmacists must include the actual cost of an education event, as the cost may vary depending on the venue/event.
Pharmacies are required to retain all documentation related to the use and reporting of professional allowances that may be needed for the ministry’s audit process. Two senior officers of the operator of the pharmacy, or company that owns, operates or franchises pharmacies, or by their auditors will be required to certify that the information reported to the ministry is complete and accurate. For smaller independent pharmacies, the owner and bookkeeper may be required to certify the information.
Frequency of reporting
The ministry intends to organize several ½-day sessions beginning in late March with stakeholders to present the reporting framework. Furthermore, the ministry will prepare detailed information packages for individual pharmacies that include the worksheet and step-by-step explanation of the reporting process.
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