PB Calderon proposes consignment of meds in prov’l, district hospitals

A proposed Cebu ordinance seeks to implement a consignment system on the purchase of medicine supplies in provincial and district hospitals that would make it available for patients at lower prices.

Under the “Medicine Consignment System,” a district hospital can enter into an agreement with a manufacturer or dealer for a year for the purchase of supplies with the condition that the supplies are at least ten percent cheaper than market prices.

The proposed ordinance provides that a trust fund of P15 million be set aside for the implementation of the project and that revenue generated be added to the trust fund to make the new system self-sustaining.

According to PB Member Peter John Calderon, chairman of the committee on health and proponent of the legislation, the system has been continuously studied by the Department of Health and implemented by several local government units for easy, timely and cheap access to essential medicines and drugs.

The proposed legislation was discussed by the PB during their regular session last Monday.

However, its approval for second reading was postponed to the next session pending potential amendments from the discussion.

Based on the proposed ordinance, the consignment agreement will be valid for a year with the two parties possessing the option to terminate it due to “valid and justifiable reasons.”

“The selling price of consigned items shall be in no case higher than the prevailing price of the same items in local private pharmacies and outlets provided further that a maximum ten percent markup to the offered price shall not make the selling price of consigned items be more expensive or higher than prevailing market prices,” it said.

The suppliers, manufacturers and dealers must first receive accreditation from the Capitol’s Bids and Awards Committee (BAC).

A Consignment Advisory Committee, which will be presided by the BAC Chairman, will also be formed to formulate ways on how to improve the system, as well as craft its guidelines or implementing rules and regulations (IRR).

A consignment committee will also be created in the provincial level and the hospital level to consolidate and approve the listing of medicine supplies that will be consigned.