DOH rejects call to delay implementation of drug prices cut

MANILA, Philippines - The government rejected yesterday calls to delay the Aug. 15 implementation of a price cut on 43 types of medicine to allow private hospitals to dispose stocks bought at higher costs.

Health Undersecretary Alex Padilla said the decision was made after a meeting yesterday with various stakeholders, including the Drugstores Association of the Philippines (DSAP) and Philippine Healthcare Association of the Philippines, whose members include pharmaceutical firms.

“They were in full agreement with the policy,” he said. 

“They confirmed that they could comply... as scheduled.”

The meeting was attended by representatives of the three biggest hospitals: St. Luke’s Medical Center, Asian Hospital and Makati Medical Center.

At Malacañang, Press Secretary Cerge Remonde said a dialogue would be the best action to sort out the issues.

“But there is no turning back on the implementation of the cheaper medicines law,” he said.

“People have long been suffering, and we should not allow the hospitals to be used by the multinational corporations to blackmail our government to back off on this issue.”

Last week, Dr. Rustico Jimenez, Private Hospitals Association of the Philippines president, asked the Department of Health to defer the implementation of Executive Order 821.

Jimenez said medicine stocks in hospital pharmacies were bought at current prices so they could not be sold at discounted prices on Aug. 15.

The pharmaceutical firms could not give “a definite answer” how the stocks would be priced after the EO takes effect, he added.

However, Padilla said PHAP’s concern had no basis since pharmaceutical companies have committed to give rebates and adjust the prices of previously delivered medicine.

“I don’t think this should be a problem (at this point) since drug companies will also make adjustment,” he said.

“If they don’t do so, then that’s the time (when PHAP should react).”

Meanwhile, Josephine Inocencio, DSAP president, said pharmaceutical firms have assured them of price adjustments for medicine already delivered after the price cut takes effect.

“We have already talked about this before,” she said. 

“They gave their word and we are holding to it. With that assurance, we’ll be trying to implement the order.”

Prices of medicine will be reduced in pharmaceutical outlets in Metro Manila and in the provinces with computerized system of inventory on Aug. 15.

Small drug outlets in far-flung provinces have until Sept. 15 to comply.

‘Blame the doctors’

Authors of the cheaper medicine law blamed yesterday doctors who have warned of a hospital for their failure to give their side when the law was still being deliberated.

Palawan Rep. Antonio Alvarez said the nation does not need a hospital holiday.

“What we need is a permanent holiday from high prices of medicines,” he said.

“And this won’t be achieved by this 11th hour blockade of some hospital owners. This is not the first time hospitals have wanted to pull the plug on the cheap medicine law.

“They also threatened a holiday if the generics-only provision will not be excised. I am surprised why they are raising this issue more than a year after the law has been passed and more than two years after it was first debated in Congress, during which they were given ample (time) and space in hearings in and out of Congress to air their opinion.”

Iloilo Rep. Janette Garin, a doctor and one of the law’s main authors, said a dialogue must be initiated instead of hospital owners trying to blackmail the government.

“The concern of hospital pharmacies is understandable as there was an agreement that the Department of Health should come up with a timetable of implementation with consideration of reasonable time for hospitals and pharmacies to dispose of stocks,” she said.

“The DOH should have informed the distributors and retailers of the list of medicines up for regulation and inform them of the timetable of implementation, unless they have already been informed and are just looking for reasons to delay implementation.” – Sheila Crisostomo, Helen Flores, Delon Porcalla, Marvin Sy