Date: AURIS IY. 2Vk% = det) CoiMy, ‘Clmaiication: Kogular Reason RECORD OF ATTENDANCE: HON. EDWARD MARK L MACIAS Vice Govemor & Presiding Officer Present HON. JOHN'T, RAYMOND, JR. ~ Present HON, JAIME L. REYES + Prescot HON. PETER PAULF.RENACIA —- Present HON. JOSE A. BALDADO + Present HON. ERWIN MICHAEL L. MACIAS - Prosent HON, ESTANISLAQ V, ALVIOLA + Prescat HON. VALENTE D. YAP > Present HON. CHESTER V. LIM = Prosent HON. MA ANTONIAE. VILLEGAS ~ Present HON. KIT MARC B. ADANZA + Presont HON, ADEM B. MAXINO (SK) + Present HON. KURT MATTHEW . TEVES (LNMB)- Present HON. MARWIN A. MASON (PCL) —- Present RESOLUTION NO. 737 ‘Author: HON. KIT MARC B. ADANZA “WHEREAS, providing quality hospital and medical services is one of the Primary and priority agenda of this amendment: “WHEREAS, furthermore the stme are found to be economically and socially feasible and therefore significantly beneficial to the province as a whole; 2 oe “WHEREAS, in the heBee. No. 737 2. “De tonto bythe Sangtnimg Panalmiga of Nore Urinal a: exon 1. Paragraph 4.14 under Section 4 of Resolution No. 445, series Of 2010, enacting Ordinunee No. 37 ba hereby amended to read aa follows: Section 4. GENERAL PROVISIONS AND GUIDELINES - To achive the consignment objectives, the following pervinie sad guidelines shall be observed: X-X-x~x-y vapor ——$—$—$— tn ee AE IESection 1. TITLE ~ ORDINANCE NO. 37 (eries of 2010) AN ORDINANCE PROVIDING FOR THE METHOD AND MECHANISM IN PROCUREMENT OF MEDICINES AT THE PROVINCIAL HOSPITAL AND DISTRICT HOSPITALS OF NEGROS ORIENTAL THROUGH CONSIGNMENT BASIS AND ITS IMPLEMENTING RULES AND GUIDELINES THEREOF. CONSIGNMENT ORDINANCE OF NEGROS ORIENTAL’, Section 2. OBJECTIVES. 1 3, 6. To improve the delivery of health services by ensuring availability of all essential drugs and medicines commonly prescribed by the medical staff. To ensure lower cost of drugs and medicines to make it affordable to the general populace. To provide quality assurance through client satisfaction, To minimize out of pocket expense by the patients, ‘To generate income for hospital operation and improvements. To reduce hospital morbidity and mortality, Res. No, 4: ie k ‘This ordinance shall be known as ‘MEDICAL Section 3. DEFINITION OF TERMS - For purposes of these implementing Rules and Regulations, the following shall be defined as follows: 4. Consignment ~ an agreement entered into by the provincial government and Supplier Company wherein the latter undertakes to place its goods at the pharmacies of the former for the sale of the same to the public at a reasonable and affordable cost. The provincial government is obligated to pay those items sold only. b. Consignor - a duly accredited supplier that undertakes to place its goods on consignment basis at the pharmacy of the consignee. ©. Consignee — government provincial, district and community primary hospitals that accept the goods consigned, delivered by the consignor, and sell the same to the public at a reasonable and affordable price, 4. Consigned Goods ~ all goods or items which the consignor delivers to the consignee under 2 consignment agreement. / 7 1+ 2010 4.10 A Consignment agreement shall be executed by and between the consignor and the consignee; the Integrated Provincial Health System being represented by the Provincial Governor, 4.10.1 Ownership of the goods delivered on consignment basis shall remain to the supplier concemed. 4.10.2 Consignee can accept goods with at least one year expiration date; however, the consignor shall be responsible to replace any near expiring and expired items, 4.10.3 Consignee shall be bound to pay the consignor for g00ds sold only. : 4.10.4 Consignor shall serye consignment order placed by the consignee afier payment of goods sold. 4.10.5 Consignor may observe inventory at his own discretion, 4.10.6 Consignee and consignor are both responsible for maintaining critical level, and in the installation of display paraphernalia for their products in the space provided for in the pharmacy. 4.10.7 Consignee shall be entitled to any discount offered by the consignor for payment made before due date, 4.10.8 Losses arising fiom fortuitous events shall relieve the consignee from any responsibility, . 4.11 A separate bank account shall be opened solely for the proceeds of this program. 4,12 Income derived from the program shall be deposited at the Provincial Treasurer's Office and held in trust for the corresponding consignee hospital 4.13 Mark-up of consigned goods shall be twenty percent (20%) above acquisition cost. 4) oot delivered for consignment shall be available on cash basis only. It shall not be made available for PhilHealth patients, for guaranteed accounts for employers, or indigent patients. However, these goods will be made available for patients charged to PHINO accounts 4.15 No discount shall be granted to any customer except for senior citizens and employees. For senior citizens, discounts shall not exceed the mark up. Employees can enjoy these ‘goods at cost per prescription 4.16 ‘The pharmacist shall monitor the stock level of the consigned goods so au to determine consumption. When the stock level reaches its reordering point which is 50% of the goods consumed, an inventory report shall be prepared by the They CERTIFIED PHOFO COPY Res. No, 445Pisimoclst and Submit the same to the hospital accounting ice. This report will be supported with prescriptions marked paid and official receipt numbers necessary for Processing of payment. 4.17 After the preparation of the inventory report, tho pharmacist Prepares consi orders, duly signed and approved by the Provincial Officer (PHO 1). However, in District and Community Primary Hospitals, the consignment orders shall be signed by the Chief of Hospital (COH) and the Community Primary Hospital supervisor. 4.18 Inventory of consigned goods shall be made every end of the month or at the last working day of the month as the’ case may be, or whenever necessary, as determined by the pharmacist in-charge, in the presence of the, supply. officer. The consignee’s pharmacist shall be held responsible for losses arising from pilferage or theft. 4.19 Proceeds of this program shall be used to augment maintenance and other operating expenses (MOOE). Res. No. 445, Section 5, MECHANICS - IDENTIFICATION AND SELECTION OF SUPPLIERS. sa 5.2 53 54 5.5 The Pharmacist shall submit a list of drugs and medicines needed to the Consignment Committee, as recommended by the hospital Therapeutics Committee and found in the ‘Hospital Formulary. The Consignment Committe shall issue an invitation to the prospective consignors concemed. The consignors must be duly accredited by the Bids and Awards Committee of the IPHO. The consignors invited wil be requested to submit their product price list. The chosen consignors will then be required to submit the following documents prior to the drafting of the contract, to wit: 5.3.1 DTESEC Registration 3.5.2. Mayor's Permit 5.5.3 TIN and VAT Registration 5.5.4 Notarized statement of the consignors that their company i not black listed or banned from the bidding by any govemment agency, office or corporation. 5.3.5 Certification from BFAD Logal Office that the ‘consignor has no pending case. CERTIFIED PHTO Col GATE: =76. Res, No. 445, 55.6 DOH Accreditation validity until —CList of Accredited Products), oo S57 Certificate of Exclusive Distributorship Agreement from the Principal Manufacturer valid 5.5.8 Audited Rinancial Statements received by BIR for two years 5.5.9 Certificate of Authorized Representative duly Notarized, 5.5.10 Letter Authorizing the Negros Oriental Hospital System Consignment Committee or duly authorized representative/s to verify any or all of the documents submitted for the Biigibility check. 5.5.11 Cettificate/s of Product Registration. 5.5.12 Certificate of Official Registration of the prospective consignor by the consignment committes, 5.6 In case where the qualified supplier docs not go into consignment, a waiver shall be issued by the supplier. 5.7, Likewise drugs and medicines phased out of the market must also be deleted from the formulacy. 5.8 A consignment contract should be prepared duly signed by the contracting parties. 5.9 New drugs introduced into the market must be incorporated into the hospital formulary when deemed necessary by the Therapeutics Committee and recommended for inclusion in the National Drag Formulary. 5.10 The Consignment Committee may seck the assistance of the IPHO Bids and Awards Committee for the verification of the documents, Section 6. PHARMACY - FUNCTIONS, 6.1 Receive and check drugs, 6.1.1 Upon receipt of drugs in the pharmacy, it will be checked by the pharmacist in-charge, in the presence of the Intemal Control Unit (CU) or its duly authorized representative, 6.1.2 A separate logbook and ledger cards shall be ‘maintained for the consigned drugs, 6.1.3 4 special color coded check lst form containing the ug items and their comesponding selling price shall ‘be provided for the dispensing pharmacist ye CERTIFIED PHOTO Copy \ OATE:6.14 6.16 6.17 6.18 A Pharmacist will be assigned to handle the key in the stock room for the consigned drugs and will be responsible for the stocks released for display and its ‘monthly monitoring and inventory. The Pharmacist should maintain « specified quantity Of consigned goods in the clispensing area per day on display and would provide a consigned drug list for the dispensing pharmacist to check. A special form shall be provided for this activity. Tt shall contain in tabular form the following: 6.1.6.1 Names of consigned*drugs in generics and brands, | 6.1.6.2 Date, 6.1.6.3 Shifts(__), 6.1.6.4 Quantity received from previous shift. 6.1.6.5 Signature of dispensing pharmacist on duty. The In-coming dispensing pharmacist on duty shall check and affix her signature in the consigned drug list to signify that she received the stated balance quantity corresponding to the actual on display received from the previous shift. The pharmacist displaying shall adopt a system as to the case per shift checking display balances. 6.2 DRUG DISTRBBUTION. 624 Regular Sales. 6.2.1.1 The dispensing pharmacist on duty must issue consigned goods on cash basis only, 6.2.1.2 Special color-coded consignments checklist form will be accomplished by the dispensing pharmacist based on the original Rx and direct the client to the cashier for payment. 6.2.1.3 It is the responsibility of the dispensing pharmacist on duty not to issue consigned goods under any circumstances charge to PhilHfealth, Veterans, Paywards, or Guarantor Slips. However, employees may avail of the goods at cost price on cash basis 62.1.4 The pharmacist on duty will tabulate his/her sales on her shift Res. No, 445, cerrineopuayé coPY AATEC6.2.1.5 All consignment prescriptions will be filed separately 6.3. MONITORING DRUG CONSUMPTION. ©.3.1 Consignment, regular sales and congressional funding ‘sales’ prescriptions will be filed by the dispensing pharmacist on duty separately. 63.2 The dispensing pharmacist on duty por shift will accomplish all reports. 6.3.3 The pharmacist in-charge vill then collect the "consignment prescriptions every after am-shift (7- 3), at about 3:00 pm daily (cut-off time), 6.3.4 The pharmacist in-charge will tabulate and consolidate the prescriptions (regular sales. and congressional sales) and post it in the ledger cards, 6.3.5 The posted prescriptions gathered would then be photocopied. 6.3.6 The original prescriptions will be filed and the photocopy set aside for future processing, 6.3.7 A consignor’s representative may check their stock level every third week of the month or whenever deemed necessary. 6.3.8 Inventory with the supply officer shall be accomplished any day on the last week of the month, Section 7. PROCESSING PAYMENT RE-ORDER. 7.1 When the card balance coincides with the actual stock reaches Fifty Percent (50%), start processing payment. 7.2 Photocopies of the prescriptions for the regular and the congressional sales shall be attached to the Inventory report which shall contain the receipt numbers and certified as true copies, then forwarded to the accounting section for processing of payment to suppliers. 7.3 The ledger cards must be marked PROCESSED (on the consumed quantity), 7.4 Concomitantly, a re-order will be processed to replenish the consumed stocks using a Consignment Order Form. 7.5 Attach to the Consignment Order Form the supplier's consignment contract, to be forwarded to PHO Il for apoyoval. V8 - CERTIFIED PHOTO COPY Res. No. 445Res. No. 445 Section 8. ACCOUNTING, &L Shall verify and 5 phar ith ee 8s inventory report submitted by the jtema Wi the conesponding prescriptions a the sald Note: This, Sin shal be recorded as part of the other Payable accounts (450) and its corresponding cash shall form part of the Cash in Bank aca ‘Cunrency, Current Account (110). 8.2 Processing Clerk shall fill up a consi cess : ignment proceeds monitoring form, which is pre numbered. The form shall Contain the following information as shown below: This form shall be accomplished in 2 copies, the original shall be attached as supporting document in every payment made and a duplicate shall be kept as. accounting file. 8.3. Shall consolidate all CPMF every end of the month. 8.4 Shall maintain a separate record book to monitor the proceeds and disbursement of this program. 8.5 Shall submit report to the Consignment Committee every 5" working day of the following month. Section 9. CASHIERING. 91 COLLECTION. CERTIFIEG PHOTO Copy OATE: _\-5. 2010 =10- Res, No. 445, 2 6 Soe eke of an reccipt shall be “ssigned for consignment proceeds only, -lr— Consignment will be receipted and be deposited to {ts corresponding account 9.2 DISBURSEMENT 9.2.1 Provessed and duly approved voucher shall be the basis of payment of the consigned goods, Section 10. EFFECTIVITY. This Ordinance shall take effect fifteen (15) days after its publication in a newspaper of local or general circulation or posting in at least two(2) conspicuous places in the province. “Enacted, June 28, 2010.” Miao MA. ANTONIA E. VILLEGAS ‘Vice Govemnor of Negros Oriental Presiding tee UX ORIGINAL FOR GUBERNATORIAL APPROVAL: fee JOSE ADO Governor ¢f Negros Oriental Dato:___" JUN as CERTIFIED PHOTO COPY