Mark-up Regulation of Essential Medicines in DOH Facilities
Over the past decade, procurement prices have lowered in DOH hospitals because of more transparent pricing and pricing reforms such as the Drug Price Reference Index (DPRI). However, mark-ups vary widely within and across hospitals (i.e., 15%-2,574%) despite the implementation of AO No. 2005-0010, which allows a 30% mark-up for all medicines procurement regardless of acquisition cost.
The passage of the Universal Health Care Act reinforced the mandate of the government to ensure the affordability of essential medicines using price reference indices and determination of price mark-ups among DOH-owned health facilities to protect the patients from excessive and unnecessary charges.
In response to this, the DOH has developed guidelines to provide a uniform mark-up structure on essential medicines across all DOH hospitals to lessen the wide variation of retail prices of the same medicine.
Frequently asked questions
News and updates regarding on Regulation of Mark-up on Essential Medicines at DOH Facilities
- Department Order (DO) presented and approved during the Execom meeting last August 18, 2020
- DO currently en route for signature of the Secretary of Health.
- Effectivity of the DO shall be three (3) months after it is signed.
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