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The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

Client Alert

The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.

Rules Available for Stakeholder Comment

Comments on these proposed rules are due to the Ohio Board of Pharmacy by January 17, 2024, using the Board’s online form at: www.pharmacy.ohio.gov/comment.

Rule 4729:5-3-23: Mobile clinics or medication units (New)

  • A nonprofit organization, corporation, or association may operate a mobile unit to dispense and administer prescription medications and devices.
  • To legally operate, the mobile clinic will be required to register for a no-cost, satellite license that is affiliated with an existing terminal distributor of dangerous drugs (TDDD) license.
  • The record-keeping and storage requirements for the mobile unit will mirror the requirements for a clinic with a TDDD license. For example, all mobile units must be dry, well lit, and well ventilated; maintained in a clean, sanitary, and orderly condition; and secured with suitable locks. Additionally, storage areas for dangerous drugs must be maintained at temperatures and conditions that will ensure the integrity of the drugs.
  • When drugs are “dispensed” from the mobile clinic, a licensed pharmacist must be on the premises and the mobile unit must be under the control and management of the pharmacist.

Rule 4729:5-2-04: Procedure for discontinuing business as a terminal distributor of dangerous drugs (Amended)

  • A TDDD that plans to discontinue business activities must file a notice with the Board of Pharmacy within thirty days of discontinuation of business.
  • Additionally, a TDDD licensed as a pharmacy that is permanently closing must provide notification at least fifteen calendar days prior to closing to each patient who has filled a prescription within the previous six months. The notice must include (a) the last day the pharmacy will be open; (b) the name, address, and telephone number of the pharmacy or person that will take possession of the pharmacy records; (c) instructions on how patients can arrange for transfer of their pharmacy records to a pharmacy of their choice; and (d) the last day a transfer may be initiated.

Rule 4729:5-5-15: Manner of issuance of a prescription (Amended)

  • For outpatient prescriptions for minors (defined as people under the age of 18), all licensed prescribers must list the patient’s weight, for the outpatient prescription to be filled.

Rule 4729:5-5-18: Dispensing customized patient medication packages by an outpatient pharmacy (Amended)

  • In lieu of dispensing two or more dangerous drugs in separate containers, a pharmacist practicing at an outpatient pharmacy may dispense a customized patient medication package. The quantity of the package dispensed may not be more than a sixty-day

Rule 4729:5-5-26: Outpatient Pharmacy Delivery Services (New)

  • An outpatient pharmacy licensed as a TDDD providing delivery services must meet the following requirements pre-shipment: (1) contact the patient or patient’s caregiver for approval prior to any billing or delivery of a drug or device, except if the patient has provided general consent for delivery services; (2) notify the patient or patient’s caregiver of the delivery plan and expected arrival; (3) ensure that the drugs will be maintained within the temperature ranges recommended by the manufacturer until the delivery has been completed; and (4) enclose information informing the patient, if the patient's prescription is a temperature sensitive drug, that it is at risk for damage due to extreme hot or cold temperatures or moisture.
  • Any drug or device that is compromised or lost must be replaced by the pharmacy at no additional cost to the patient.

Rule 4729:6-2-05: Change in description of a distributor of dangerous drugs (Amended)

  • Any change in the ownership, business or trade name, category, or address of a distributor of dangerous drugs requires written notification to the Board, a new application, and a fee paid to the Board within thirty days of the change. However, the change no longer requires a new license, as it previously did.

Rules Ready for Public Hearing

The Board of Pharmacy also has several rules in the State Agency Rule Making process. These rules will have a public hearing on February 13, 2024, at 11:00 a.m. in the Board’s hearing room, 17th Floor, Vern Riffe Center for Government and the Arts, 77 South High Street, Columbus, Ohio. Stakeholders can submit their comments in person at the hearing or in writing to contact@pharmacy.ohio.gov prior to the hearing date.   

OAC Rule 4729:5-2-05: Notification of Accessible Services (New)

  • Every outpatient pharmacy providing pharmacy services in Ohio must report to the Board within ninety days of the effective date of the rule the following information on the accessibility of services provided by the pharmacy:
  1. The type of language translation services, including translated prescription labels, for patients who are of limited English proficiency;
  2. The type of services available for patients who are hard of hearing; and
  3. The type of services available for patients with low vision.

A pharmacy that reports that it offers accessible services will be required to provide those services to patients upon request, unless the pharmacy experiences a temporary software or equipment failure of the accessible service offered.

OAC Rule 4729:5-5-02: Minimum Standards for the Operation of an Outpatient Pharmacy (New)

  • An outpatient pharmacy licensed as a TDDD must ensure that sufficient personnel are scheduled to work at all times to minimize fatigue, distraction, or other conditions that interfere with a pharmacist's ability to practice with reasonable competence and safety.
  • An outpatient pharmacy should (1) store all drugs and devices in a suitable, well-lit, and well-ventilated room and (2) maintain them in a clean, sanitary, and orderly condition.
  • Outpatient pharmacies should also provide pharmacy personnel with access to all current federal and state laws, regulations, and rules governing the practice of pharmacy and legal distribution of drugs in Ohio, including (1) a hard copy or internet access to appropriate pharmacy reference materials and (2) a telephone number of a poison control center.

OAC Rule 4729:5-5-02.1: Provision of Ancillary Services in an Outpatient Pharmacy (New)

  • An outpatient pharmacy opened to the public and licensed as a TDDD must not establish any productivity or production quotas relating to the provision of ancillary services.
  • For purposes of this rule, “ancillary services” mean services performed by pharmacy personnel that are not directly involved in the dispensation of dangerous drugs. Examples of such services include immunizations, drug administration, medication therapy management, disease state management, and refill reminders.

OAC Rule 4729:5-5-02.2: Mandatory Rest Breaks for Pharmacy Personnel (New)

  • An outpatient pharmacy licensed as a TDDD may not require pharmacy personnel to work longer than thirteen (13) hours in any workday and must allow at least eight (8) hours of off time between consecutive shifts.
  • Pharmacy personnel working longer than six (6) continuous hours per workday must be allowed to take a thirty-minute, uninterrupted rest break during that time. While the pharmacist is on a break, pharmacy personnel may only sell prescriptions that were dispensed by a pharmacist.

OAC Rule 4729:5-5-02.3: Requests for Additional Staff and Reports of Staffing Concerns in an Outpatient Pharmacy (New)

  • An outpatient pharmacy should develop a process for pharmacy staff to communicate requests for additional staff or reports of staffing concerns. Requests for additional staff or reports of staffing concerns should be communicated and documented by the responsible person or pharmacist on duty to the terminal distributor.
  • A written response to the request or report of concern should occur within fourteen (14) business days of submission and be communicated to the responsible person or pharmacy staff who submitted the request for additional staffing or report of concern.

OAC Rule 4729:5-5-02.4: Significant Delays in the Provision of Pharmacy Services (New)

  • An outpatient pharmacy has a duty to properly dispense lawful prescriptions for dangerous drugs or devices without significant delay. For new prescriptions, "significant delay" means a prescription has yet to be dispensed within three (3) business days of receiving the prescription. For refill prescriptions not generated by a pharmacy auto-refill program, "significant delay" means a prescription has yet to be dispensed within three (3) business days of receiving the prescription. For refill prescriptions generated by a pharmacy auto-refill program, "significant delay" means a prescription has yet to be dispensed within five (5) business days of receiving the prescription.

OAC Rule 4729:5-5-02.5: Outpatient Pharmacy Access Points (New)

  • An outpatient pharmacy open to the public must develop and implement an effective organizational policy that permits a pharmacist to limit the provision of ancillary services if, in the pharmacist’s professional judgment, the provision of such services (1) cannot be safely provided or (2) may negatively impact patient access to medications. Examples of ancillary services include immunizations, drug administration, medication therapy management, disease state management, and refill reminders. The pharmacy’s organizational policy should also limit pharmacy access points, if, in the pharmacist’s professional judgment, limiting such access points will minimize fatigue, distraction, or other conditions which interfere with a pharmacist's ability to safely and competently practice.
  • In the absence of an organizational policy, an outpatient pharmacy shall defer to the on-duty pharmacist's decision (1) not to provide ancillary services and (2) to limit pharmacy access points.

If you have questions about these proposed rules, please contact your local BMD Healthcare Attorneys Ashley Watson at abwatson@bmdllc.com or Daphne Kackloudis at dlkackloudis@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.