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Ohio Board of Pharmacy Update: Key Regulatory Changes and Proposals You Need to Know

Client Alert

young female pharmacist working

The Ohio Board of Pharmacy (BOP) has rescinded certain OAC rules (OAC 4729:5-18-01 through 4729:5-18-06), removing regulations on office-based opioid treatment (OBOT) clinics. The rescissions took effect on June 3, 2024.

The BOP also published a new rule, OAC 4729:8-5-01, which sets explicit reporting guidelines for licensed dispensaries and became effective on June 7, 2024.

Below is a detailed overview of the new, rescinded, and proposed rules.

Ownership - OAC 4729:5-18-02 (Rescinded)
This rule mandated that OBOT clinics be solely owned and operated by physicians. Non-physician ownership is now permitted, eliminating the need for waivers previously required for such ownership. Additionally, the requirement to submit a new licensure application upon any change of ownership has been removed, offering greater flexibility in the ownership and operation of OBOT clinics.

Criminal Records Checks for Office-Based Opioid Treatment Clinics - OAC 4729:5-18-03 (Rescinded)
This rule required OBOT clinics to conduct both Ohio Bureau of Criminal Identification and Investigation (BCI&I) and Federal Bureau of Investigations (FBI) records checks for physician owners, officers, and specified personnel, including fingerprint submissions. Clinics also had to ensure that employees had no felony theft or drug abuse convictions within the past ten years, with new checks required for any personnel changes.

Security, Control, and Storage of Dangerous Drugs - OAC 4729:5-18-04 (Rescinded)
This rule mandated that controlled substances be stored in locked, substantially constructed cabinets or safes, with limited access to prescribers and certain licensed health care professionals.

Record Keeping - OAC 4729:5-18-05 (Rescinded)
This rule required OBOT clinics to maintain comprehensive records of all dangerous drugs received, administered, personally furnished, disposed of, sold, or transferred, including specifics about drug receipts, temperature control monitoring, patient and prescriber information, and drug disposal methods.

Compliance - OAC 4729:5-18-06 (Rescinded)
This rule outlined the compliance requirements that OBOT clinics were required to follow.

Dispensary Reporting into the Prescription Monitoring Program - OAC 4729:8-5-01 (New)
Effective June 7, 2024, this rule requires that licensed dispensaries report detailed medical marijuana dispensing information to the BOP within five (5) minutes of dispensing. Required data includes dispensary and patient details, the recommending physician’s Drug Enforcement Agency number, and comprehensive prescription information. If no dispensing occurs in a 24-hour period, the dispensary must submit a "zero report" within thirty-six (36) hours of the previous report. Dispensaries closed on certain days must inform the BOP of its hours to automate "zero reports" for non-business days. Additionally, dispensaries must notify the BOP if it ceases dispensing medical marijuana. All information must be formatted according to the American Society for Automation in Pharmacy standards and comply with confidentiality laws. This rule aims to ensure accurate, timely, and confidential reporting to enhance monitoring and compliance within the medical marijuana program.

There will be a hearing on July 16, 2024, for the proposed new and amended rules below. Public comments are due by the date of the hearing. Please reach out to BMD Member Daphne Kackloudis for help preparing comments on these rules.  

Disciplinary Actions (Pharmacists) - ORC 4729:1-4-01 (Amended)
This amended rule defines the word “reckless behavior” in the context of pharmacy personnel. Additionally, the rule narrows the scope of violations involving conspiracy, attempts, or aiding and abetting considered by the BOP, and exempts pharmacy personnel from disciplinary action related to an error in dispensing unless the individual engaged in reckless behavior.

Duty to Report (Pharmacists) - ORC 4729:1-4-02 (New)
This new rule establishes clear requirements for when and how pharmacists should notify the BOP about violations of Ohio laws. Under this proposed rule, pharmacists are obligated to report knowledge of violations, including practicing while impaired by substances, unprofessional conduct, and dispensing errors, to the Board within ten (10) days of discovery. The rule maintains the confidentiality of the reporting pharmacist, though they may be required to testify in disciplinary proceedings without disclosing their identity as the reporter. Additionally, pharmacists must report criminal convictions, entry into diversion programs, arrests for felonies, and any disciplinary actions taken by other states within ten (10) days of such events.

New rules (ORC 4729:2-4-02 and ORC 4729:3-4-02) also extend reporting obligations to pharmacy interns and pharmacy technicians for the same conduct.

Continuous Quality Improvement Programs in Pharmacy Services - ORC 4729:5-3-22 (New)
This new rule mandates that all pharmacies licensed as terminal distributors of dangerous drugs establish Continuous Quality Improvement (CQI) programs. This rule aims to enhance patient safety and the quality of pharmacy services by systematically addressing and preventing dispensing errors.

Under this new rule, pharmacies must implement or participate in a CQI program that documents, assesses, and responds to dispensing errors. Dispensing errors are broadly defined, encompassing variations from prescriber's orders, failure to exercise professional judgment in identifying and managing drug interactions, and errors in bulk repackaging or filling of automated devices. This program shall include written policies, internal reporting mechanisms, and documentation of all quality assurance activities for a minimum of three (3) years.

In the event of a dispensing error, pharmacies are required to promptly communicate the error to the patient or caregiver and, if the error could result in patient harm, to the prescriber. Documentation of these communications must be maintained for three (3) years.

Duty to Report (Pharmacies) - ORC 4729:5-4-02 (New)
The new rule mandates that pharmacies report any dispensing errors resulting from reckless behavior or errors that result in permanent patient harm, near-death events, or patient death, as categorized by the National Coordinating Council for Medication Error Reporting and Prevention Medication Error Index. Additionally, pharmacies are required to report the termination or resignation of any licensed or registered individual due to dispensing errors, unprofessional conduct, dishonesty, reckless behavior, or impairment by substances that render them unfit for professional duties.

Reports must be submitted by mail, through the Board’s online complaint form, or by telephone within ten (10) days of the quality assurance review or the employment action.

For assistance or questions regarding these regulatory updates, please contact BMD Healthcare Member Daphne Kackloudis at dlkackloudis@bmdllc.com or Attorney Jordan Burdick at jaburdick@bmdllc.com.


Changes to FFCRA Paid Leave: Congress’ Revisions to Employment COVID-19 Leave Benefits Signals the Light is at the End of the Tunnel

Late in the evening on December 27th, President Trump signed into law the government’s $900 billion COVID-19 relief package (the “Stimulus Bill”). Among other economic stimulus benefits, the Stimulus Bill contains the $600 stimulus checks that will be issued to eligible individuals as well as, relevantly, changes to the Families First Coronavirus Response Act (“FFCRA”). The FFCRA was implemented in April 2020 and provided benefits to individuals who missed work as a result of an actual or suspected COVID-19 illness or to care for a child when their school or childcare service was closed because of COVID-19. Importantly, the Stimulus Bill extends eligibility for employer payroll tax refunds for leave payments made to employees on or before March 31, 2021 under the FFCRA, signaling to the American people that Congress believes many of the employed public will be vaccinated by this time, the light at the end of the tunnel. However, the Stimulus Bill does contain a caveat that employers are no longer required to provide FFCRA leave benefits after December 31, 2020, but if they do, they will receive the payroll tax credits, up to the maximums provided in the FFCRA, for payments made prior to April 1, 2021. Below we provide a list of questions and answers we received to date following the passage of the Stimulus Bill. We expect the U.S. Department of Labor (“DOL”) to issue additional questions and answers as the Stimulus Bill is implemented, and we will update this Client Alert as these are received.

Healthcare Speaker Programs: New OIG Alert

In a rare Special Fraud Alert issued on November 16, 2020 (the “Alert”), the Office of Inspector General (“OIG”) urged companies who host speaker programs to reassess their programs in light of the “inherent risks” associated with these activities. The Alert reports that, in the last three years, drug and device companies have reported paying nearly $2 billion to health care professionals for speaker-related services.

Value-Based Care Advances – CMS Issues New Final Rules for Stark and Anti-Kickback Statutes

The Centers for Medicare & Medicaid Services (“CMS”) and the Department of Health and Human Services (“HHS”) Office of the Inspector General (“OIG”) issued two highly anticipated (and quite extensive) Final Rules to reform the Stark Law and Anti-Kickback Statute (“AKS”) regulations. The Final Rules generally take effect on January 19, 2021. The Final Rules include new safe harbors for the AKS and new exemptions to the Stark Law to allow for greater flexibility. According to the HHS, the goal of updating both laws is to make it easier for providers to engage in care coordination and value-based care programs without running afoul of the statutes. Please note that this client alert could not cover the full extent of the Final Rule changes so please contact your BMD Healthcare attorney with questions.

Mandatory Filings Under CFIUS New Rules

On September 15, 2020, the Committee on Foreign Investment in the United States (“CFIUS”) promulgated a final rule modifying its mandatory declaration requirements for certain foreign investment transactions involving “TID US businesses” (sensitive U.S. businesses dealing in critical technologies, critical infrastructure and sensitive personal data) dealing in “critical technologies” – i.e., U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or more critical technologies. The new rule also makes amendments to the definition of the term “substantial interest” (used to determine whether a foreign government has a substantial interest in an entity). The final rule became effective on October 15, 2020.

IRS Guidance on Employee Retention Credit

The Employee Retention Credit created under Section 2302 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Since the adoption of the CARES Act, employers have expressed concern that if one employer acquires another employer that previously received a PPP loan, the acquirer’s entire aggregated group may no longer be eligible to claim the Employee Retention Credit.