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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The Ohio Board of Pharmacy (BOP) has rescinded certain OAC rules (OAC 4729:5-18-01 through 4729:5-18-06), removing regulations on office-based opioid treatment (OBOT) clinics.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Below is a detailed overview of the new, rescinded, and proposed rules.

Ownership - OAC 4729:5-18-02 (Rescinded)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Criminal Records Checks for Office-Based Opioid Treatment Clinics - OAC 4729:5-18-03 (Rescinded)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Security, Control, and Storage of Dangerous Drugs - OAC 4729:5-18-04 (Rescinded)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Record Keeping - OAC 4729:5-18-05 (Rescinded)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Compliance - OAC 4729:5-18-06 (Rescinded)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.


Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).

Another Transparency Obligation: The FinCEN Beneficial Ownership Information Reporting Requirements

Many physician practices and healthcare businesses are facing a new set of federal transparency requirements that require action now. The U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) Beneficial Ownership Information Reporting Requirements (the “Rule”), which was promulgated pursuant to the 2021 bipartisan Corporate Transparency Act, is intended to help curb illegal finance and other impermissible activity in the United States.

“In for a Penny, in for a Pound” is No Longer the Case for Florida Lawyers

On April 1, 2024, newly adopted Rule 1.041 to the Florida Rules of Civil Procedures goes into effect which creates a procedure for an attorney to appear in a limited manner in civil proceedings.  Currently, when a Florida attorney appears in a civil proceeding, he or she is reasonable for handling all aspects of the case for their client.  This new rule authorizes an attorney to file a notice limiting the attorney’s appearance to particular proceedings or specified matters prior to any appearance before the court.  For example, an attorney can now appear for the limited purpose of filing and arguing a motion to dismiss.  Once the motion to dismiss is heard by the court, the attorney may file a notice of termination of limited appearance and will have no further obligations in the case.

Enhancing Privacy Protections for Substance Use Disorder Patient Records

On February 8, 2024, the U.S. Department of Health and Human Services (“HHS”) finalized updated rules to 42 CFR Part 2 (“Part 2”) for the protection of Substance Use Disorder (“SUD”) patient records. The updated rules reflect the requirement that the Part 2 rules be more closely aligned with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) privacy, breach notification, and enforcement rules as mandated by the Coronavirus Aid, Relief, and Economic Security Act of 2020.