In EXCERPT FROM THE MINUTES OF THE 17! REGULAR SESSION OF THE 14" SANGGUNIANG FANLALAWIGAN OF THE PROVINCE OF AURORA HELD AT THE SP SESSION HALL, PROVINCIAL CAPITOL, BALER, AURORA ON DECEMBER 10, 2019 PRESENT: HON. CHRISTIAN M, NOVERAS, Vice-Govemor & Presiding Officer HON. MARIANO C. TANGSON, Regular Member, I" District HON. ISIDRO P. GALBAN, Regular Member, 1" District HON. JESUS V. PALMERO, Regular Member, 1* District HON. PHILIP BUTCH M. BAUTISTA, Regular Member, |*' District HON. JENNIFER A. ARANA, Regular Member, 2° District HON. EUGENE B. CALUGTONG, Regular Member, 2» District HON. LORDAN 8. ROXAS, Regular Member, 2» District HON. NICASIO M. SALAMERA, Regular Member, 2" District HON. RAFAEL M. DE MAYO, Ex-Officio Member, LNB Pres. HON, JOVENE MIKE B, ALPUERTO, Ex-Officio Member, SKF Pres. HON. ONASIS Q. RONQUILLO, Ex-Officio Member, PCL Pres. HON. MARY JANE B. DONATO, Ex-Officio Member, IPM Rep. ABSENT: HON. MARY JANE B, DONATO, Ex-Officio Member, IPM Rep., (On Leave} PROVINCIAL ORDINANCE NO. 304 Series 2019 AN ORDINANCE ESTABLISHING THE PROVINCIAL GOVERNMENT OF AURORA HOSPITALS MEDICAL CONSIGNMENT SYSTEM. WHEREAS, the Republic Act No. 6675 or the Generics Act of 1998 as amended by RA 9502 or the Universally Accessible Cheaper and Quality Medicines Act of 2008, provides that it is the policy of the State to protect the public health and, when the public interest or circumstances of exireme urgency so require, it shall adopt appropriate measures to promote and ensure access to affordable quality drug and medicines for all; WHEREAS, pursuant to Rule 2 Section 7.3.2, paragraph (a) of RA 9184 or the Govemment Procurement Reform Act. consignment system can be used as a mode of implementation in the acquisition of goods; WHEREAS, in order to bridge the gap between the mandate to deliver basic health services to the public and inadequacy of resources, the Department of Health (DOH) through Administrative Order No. 145-2004 has designed a drug consignment for the purpose of adhering to the basic principle of transparency and competitiveness applicable to all DOH Retained Hospitals and Other Government Health Units; WHEREAS, in conformity with the health development agenda of the province to ensure the accessibility, availability and affordability of the essential medicines to meet the actual demand of the PGA hospitals in a sustainable manner without entailing cost on the part of the government, it is imperative to establish this consignment system in the province:Page |2 WHEREAS, consignment system in government hospitals is technically, legally, economically and socially feasible and therefore significantly beneficial to the patients and the province as a whole: NOW THEREFORE, be it ordained that: SECTION 1. TITLE. - This Ordinance shall be known as the "Provincial Government Of Aurora Hospitals (PGA Hospitals) Medical Consignment System". SECTION 2. SCOPE AND COVERAGE. ~ This Ordinance shall cover all hospitals under the supervision and management of the Provincial Government of Aurora. SECTION 3. LEGAL BASIS. ~ This Ordinance is based on the provisions of the following laws and administrative orders; 3.1 3.2 3.3 3.4 3.5 Republic Act 7160 or the Local Government Code of 1991 Republic Act 9184 or the government Procurement Reform Act; Administrative Order No. 5 s. 2003 (Guidelines and Procedure for the Institutionalization of the Department of Health Drug Consignment System); Administrative Order No. 145 s.2004 (Revised Policies and Guidelines for the Institutionalization and Decentralization of the Department of Health Drug Consignment System); and Administrative Order 2006-0039 (Amended Policies, and Guidelines for the Institutionalization and Decentralization of the Department of Health Drug Consignment System). SECTION 4. DEFINITION OF TERMS — 4.1, 42. 43. 44, Consignor - a duly accredited supplier that undertakes to place its goods on consignment basis with the Province: Consignee — the Provincial Government of Aurora or any of its concerned departments, as the case may be; Consignment/Consignment System - a method of assuring availability of stocks wherein a consignor places its goods at the pharmacies of the consignee for the sale and the consignor being Paid for only the quantity consumed using the money generated from the sale of the consigned goods within an agreed period of time; Accreditation Certificate Requirement ~ certificate issued by the Provincial govemment of Aurora through its Bids and Awards Committee which grants authority to a supplier to competitively participate in a public bidding;AS, 46. 47. 48. 49. 13 Consigned goods of items - drugs, medicines, supplies and other items which the co consignor delivers to the consignee under a consignment agreement; Replenishment Goods - drugs, medicines, supplies and other consigned items which the consignor delivers to the consignee as replenishment for those sold by the consignee or as replacement to delivered goods which expiration date results to a remaining shelf- life not allowable by consignee or as replacement to delivered good which deterioration are beyond the control of the consignee; Consignment Request (CR) - a list of items requested by the Consignee to be placed under the Consignment System; Consignment Order (CO) - a consignee accomplished form, which directs the consignor to effect the delivery of specified drugs and medicines, supplies and other items with the corresponding required quantities as determined by the consignee within the applicable period of time; Consignment Offer ~ a tender of offer in writing by a Consignor or a prospective Consignor stating therein its interest to enter into a consignment agreement with the province which signify its interest to offer by way of consignment and other hospital needs as may be required by the Consignor. SECTION 5. COMMITTEES /OFFICES — 5.1 The BIDS AND AWARDS COMMITTEE (BAC) shall have the following functions’ 5.1.1. Shall accredit consignors, suppliers, manufactures and dealers in accordance with existing laws and policies; 5.1.2 Shall recommend to the Consignment Committee activities to be performed that will determine response consignors; 5.1.3 Shall post the Province's intention to consign certain items and/or consignment request; THE CONSIGNMENT ADVISORY COMMITTEE - Composition and Functions: 5.2.1 COMPOSITION. The Consignment Advisory Committee shall be composed of the Provincial Govemor, who will act as the Chairman, and representatives from other departments as the Governor may designate. Furthermore, the Governor may create sub-committee/s as he sees fit or as circumstances may warrant; 5.2.2. FUNCTIONS. This committee shall have the following functions: [Link] Continuing study for the improvement of the$.2.2.2 [Link] 5.2.24 [Link] la Formulation and recommendation of innovative policies for adoption and approval by the Honorable Governor and/or SP authorization; Recommendation of implementing action plans and operational policies to the line offices and other committees involved in the consignment implementation; Formulation specific guidelines or implementing rules and regulations (IRR) for the continuing improvement of the consignment system: Recommendation of appropriate accounting and auditing forms and procedures for the consignment system; 5.3 THE HOSPITAL CONSIGNMENT COMMITTEE. The Consign the consignment ment Committee shall have the responsibility for of drugs, medicines, supplies for the different hospitals under the supervision and control of the Province; 5.3.1 The members of this committee shall be composed of personnel to be designated by the Honorable Governor. 5.3.2. FUNCTIONS. The Committee shall have the following responsibilities: [Link] [Link] [Link] 53.2.4 [Link] 5.4 OTHER SUPPORT Consolidation of submitted list of items to be consigned: Advertisement of items for consignment and/or the Consignment Requests; Opening of consignment offers from consignors, including the canvassing of prices of the items to be consigned; Recommendations to the Governor for the signing of Consignment Orders; Determination of the price of items to be consigned including the reselling price; OFFICES - Other Provincial Government Departments directly or indirectly involved/needed in the implementation of the system are hereby enjoined to ensure success in its operation,5.5 15 THE EXISTING THERAPEUTIC COMMITTEES OF THE RESPECTIVE PROVINCIAL AND DISTRICT HOSPITALS The existing therapeutic committees of the different provincial and district hospitals hall be responsible for recommendation and submitting the list of items to be consigned to the Hospital Consignment Committee indicating therein the specifications, quantity, suggested price and other desired qualities of the consigned product. Medical practitioners in the hospitals who are not members of the therapeutic committee may also recommend for the consignment of drugs/medicines/supplies which are not included in the list prepared by the therapeutic committee provided a justification why such item should be included is submitted. SECTION 6, GENERAL GUIDELINES ~ 6.1 62 63 6A 65 6.6 ACCREDITATION/REGISTRATION. - Accreditation of supplies, manufacturers and consignor or drugs/medicines, supplies, equipment and other items to be consigned shall be undertaken by the Province's Bids and Awards Committee in coordination with the Consignment Committee; ITEMS TO BE CONSIGNED. ~ Consigned items (drugs, medicines and supplies) shall be based from the submitted list of items from the Consignment Committee; SELLING PRICE. - The selling price of consigned item/s fo the public, together with any mark up by the consignee, shall in no case be higher than the prevailing price of the same items in local private pharmacies and outlets; FUND MANAGEMENT. ~ Income generated from the sales of the consigned items shall be used in the payment of dispensed or utilized consigned items after the inventory shall have been conducted. Revenue generated from the program shall be deposited in a trust fund created for the purpose. The system, upon consultation and approval of the Governor may devise a “Consignment Fund" from the “Revolving Fund" to serve as a buffer fund for indigent patients, Philhealth patients, etc., as the laws and government rules and regulations may allow; QUALITY CHECK. — The consigned items shall be available to random sampling, inspection and testing by the consignee and other appropriate support agencies and submit the same to the Bureau of Food and Drugs and other regulating agencies to ensure quality of stocks and compliance to specifications without cost on the part of the consignee; AUTHORITY TO INSPECT. - The consignee or any of its duly authorized representatives are hereby given power and authority to inspect the consigned items for legal, technical, accounting, auditing and67 l6 INTER AND INTRA AGENCY TRANSACTIONS. - Other government agencies including Local Government Units may also buy items from the consignment system following the policies on "government to govemment" or "department to ather department" transactions; SECTION 7. OTHER PROVISIONS 71 72 73 74 PRODUCTS COVERED. - The iterns to be consigned shall be based ‘on the Consignment Order duly signed by the Governor; EFFECTIVITY OF OFFER/ORDERS AND REORDERS. - The prices unit, quantity and quality of items offered by the consignors and specified in the Consignment Order shall be effective without Changes for a duration of six (6) months reckoned from the acceptance of the items delivered by the consignor. With its consent, the consignor is allowed to deliver additional stocks at the same price beyond the six (6) month period upon the issuance of a new Consignment Order by the consignee. The agreement may be terminated by either party and withdrawal of a consigned items shall only be done upon service of at least thirly (30) days prior notice; OWNERSHIP OF CONSIGNED ITEMS. ~ The ownership, legal and beneficial file to the products consigned shall remain with the consignor until the products have been used, dispensed or sold by the consignee. The consignee shall be responsible for the care and custody of the items delivered by the consignor: DELIVERY. - Deliveries of items for consignment shall be in accordance with the terms and conditions specified in the Consignment Order (CO). Unless specified in the Consignment Order (CO), delivery shall be done within ten (10) days from receipt of the Consignment Order (CO) by the consignor. Failure to deliver within the specified period without justifiable reason shall cause the cancellation of the Consignment Order (CO); The products, especially the medicines and drugs delivered fo the consignee shall be covered by a corresponding Stocks Delivery Slip duly signed by the consignor and receipt shall be duly acknowledged by the consignee or his representative containing the following information: Name of Consignors; Date of the Stock Delivery Slip; Stock Delivery Slip Number; Consignment Order Number; Name of Consignor or his representative effecting the delivery; 6. Description of items; a. Generic nami b. Dosage Form; c. Strength; ORwON=75 76 77 78 79 ©. Assay Report, 7. Sub-packing Unit; 8. Quantity; 9. Unit; 10. Unit Price; 11. Total Price; 12. Other applicable description. INVENTORY AND PAYMENT ~ For purposes of paying the consignor, inventory of items RELEASED OR SOLD shall be jointly conducted by the consignor and the consignee after thirty (30) days from the date of delivery and acceptance of the consigned items and payment shall be done on or before thirty (30) days from the date of every inventory; SALE/DISPENSING OF ITEMS. ~ The consignee shall provide appropriate storage facilities for the products and shall observe the “First Expiry — First Out” basis in the use and dispensing or sale of the same; AGENCY/ASSIGNMENT. ~ Consignors shall not assign any of its rights and obligations under the consignment system without the prior consent of the consignee; FORCE MAJEURE, PILFERAGE AND THEFT. - Neither party shall be liable for any failure to perform its obligations under the Consignment system where such failure is due to Acts of God or any cause beyond the reasonable control of the parties. Where applicable, the party affected shall make all reasonable efforts to comply with its obligations to avoid damages. The warehouseman or any other responsible officer charged with the receipt and custody or consigned goods shall be bonded to answer in case of loss, pilferage or damage. Losses of consigned items before the acceptance in writing by the consignee shall be shouldered by the consignor. AUTHORITY AND CAPACITY OF THE CONSIGNOR. - A consignor who enters in consignment agreement with the Province must show: 79. Itis duly authorized by law to enter into consignment agreement; 79.2 lis products are manufactured according to specifications and standards and in compliance with the laws; 793 The products are duly registered and approved by regulatory agencies for public use such as the Bureau of Food and Drugs and other appropriate licensing/regulatory agencies;794 ls products are not misbranded or adulterated within the meaning of the Food, Drug and Cosmetics Act, the Consumer Act, etc.; and 795 lis products have expiry dates of at least one (1) year from date of delivery, 7.10 RECALL OF CONSIGNED ITEMS. - Should any of its products be banned by competent authorities or has expired or has been declared non-suited for use and dispensing, the consignor has the Obligation to inform the consignee and recall the items at no cost to the latter. The consignee has the right to inform the consignor and cause the withdrawal of banned, reclassified and expired items declared unfit for use and consumption without cost on the consignee's part; 7.11 LEGAL CLAIMS AND VENUE OF ACTION. ~ Any legal action or suit that may arise due to violation of the provision of this ordinance shall be filed exclusively before any couris within the Province of Aurora. SECTION 8. IMPLEMENTING RULES AND REGULATION. - The Provincial Health Office and the Provincial Administrator shall formulate the Implementing Rules and Regulations within 60 days from the approval of this ordinance. The Govemor shall issue an Executive Order for this purpose: SECTION 9. SEPARABILITY CLAUSE. - In the event that any provision of this Ordinance is held invalid by competent authority the remaining provisions shall not be affected thereby. SECTION 10. EFFECTIVITY. - This Ordinance shall take effect upon its approval and after a copy thereof is posted in the bulletin board of the Capitol Building, Province of Aurora, APPROVED. I HEREBY CERTIFY to the correctness of the above-quoted Ordinance. \_ dat i MARIA OLIVIA, MAZA Secretary to the Sanggunian ATTESTED: