Looking straight at the 'scandals' at Nghe An Dermatology Hospital Pharmacy

Pharmacy closed for being illegal

On September 9, 2022, Nghe An Department of Health issued Decision No. 1611/QD-SYT on revoking the Certificate of Good Pharmacy Practice (GPP) No. 2842 21/GPP issued on August 17, 2021 and the Certificate of Eligibility for Pharmaceutical Business No. 2209-21/DKKDD-NA issued on August 17, 2021 of the Dermatology Hospital Pharmacy (located at 130 Le Hong Phong Street, Truong Thi Ward, Vinh City, Nghe An Province).

Pharmacy OwnerDermatology Hospitalis a university pharmacist Le Quang Ngoc. The reason for the recall is that the Pharmacy does not maintain compliance with Good Pharmacy Practice (GPP) as prescribed in Circular No. 02/2018/TT-BYT and Circular No. 12/2020/TT-BYT. This decision takes effect from the date of signing and promulgation. Thus, with Decision No. 1611/QD-SYT, the PharmacyDermatology HospitalOfficially closed from September 9, 2022.

Nghe An Dermatology Hospital was established under Decision No. 3731/QD-UBND dated September 23, 2019 of Nghe An Provincial People's Committee, on the basis of upgrading Nghe An Anti-Leprosy and Dermatology Center. Photo: Thanh Chung

Decision No. 1611/QD-SYT was issued based on the inspection record of the surprise inspection team on the implementation of maintaining GPP compliance at drug retail establishments in Nghe An province (according to Decision No. 876/QD-SYT) dated September 7, 2022 at the Pharmacy of Dermatology Hospital and the proposal of the Head of the Department of Medical Practice Management - Department of Health... In addition, Decision No. 1611/QD-SYT was issued based on the proposal of Nghe An Dermatology Hospital itself.

Before Decision No. 1611/QD-UBND, dated August 25, 2022, Nghe An Dermatology Hospital sent Official Dispatch No. 443/CV-BVDL to Nghe An Department of Health with the content of the proposal "Temporarily suspend the operation of Nghe An Dermatology Hospital Pharmacy and establish a working group to support and guide the hospital in resolving outstanding debts at the hospital pharmacy".

According to Official Dispatch No. 443/CV-BVDL, "Nghe An Dermatology Hospital has developed a project to use public assets to serve the operation of the Nghe An Dermatology Hospital Pharmacy in Document No. 250 TTr-BVDL dated July 8, 2021 sent to the Nghe An Department of Health for submission to competent authorities for approval. However, up to now, the Project to use public assets of Nghe An Dermatology Hospital has not been approved by competent authorities, therefore, the operation of the hospital pharmacy has encountered many difficulties and problems in managing and operating activities according to legal documents.

On May 30, 2022, the hospital sent Official Dispatch No. 280/CV-BVDL to the Nghe An Department of Health, proposing support and guidance to maintain the operation of the hospital pharmacy to serve patients according to the non-profit pharmacy plan. However, up to now, it has not received any direction from the Nghe An Department of Health.

Therefore, the hospital has not been able to pay for the drugs to the pharmaceutical companies that import drugs into the hospital pharmacy. On August 24, 2022, the hospital director convened an extraordinary meeting to resolve difficulties and settle debts for pharmaceutical companies. After discussion, the participants agreed: "Please ask for a solution from the Department of Health".

Solved many problems

After Decision No. 1611/QD-UBND, dated September 14, 2022, the Director of Nghe An Department of Health issued Official Dispatch No. 3642/SYT-TTr to the Director of Nghe An Dermatology Hospital regarding the resolution of a number of issues at the Dermatology Hospital Pharmacy.

Implementing the direction of Nghe An Department of Health, Nghe An Dermatology Hospital has organized tax declaration for drug sales revenue at Nghe An Dermatology Hospital Pharmacy in 2021 and 2022.

Nghe An Dermatology Hospital Pharmacy has been closed for 4 months now. Photo: Thanh Chung

The hospital has paid the full amount of value added tax, corporate income tax and late payment fees from January 1, 2022 to September 30, 2022, with an amount of over VND 268 million; paid a fine of VND 26 million for submitting tax declarations more than 90 days after the deadline for submitting tax declarations and for issuing invoices at the wrong time according to the law on invoices for selling goods and providing services.

Nghe An Dermatology Hospital has also compiled debts related to the hospital pharmacy, identifying 26 drug suppliers at the hospital (which are pharmaceutical companies with full legal status). The total debt of the suppliers is over 4.7 billion VND. By November 4, 2022, the Hospital has fully paid off all debts to the drug suppliers at the hospital... The hospital is temporarily calculating the difference collected from pharmacy activities to include it in the unit's revenue, while waiting for instructions from superiors.

Why does Nghe An Dermatology Hospital have a series of problems that need to be solved above?- Compare relevant legal documents such as the Law on Management and Use of Public Assets; Circular No. 15/2011/TT-BYT dated April 19, 2011 of the Ministry of Health regulating the organization and operation of drug retail establishments in hospitals; compare with the Hospital Regulations and legal decisions regulating the organization and operation of Nghe An Dermatology Hospital (not allowing hospitals to have the function of retailing drugs to generate revenue for the hospital:The existence of the Dermatology Hospital Pharmacy is illegal.(The pharmacy was established without a Project for using public assets).

Due to its illegal existence, Nghe An Dermatology Hospital Pharmacy could not declare taxes according to the pharmacy's tax code. Meanwhile, the documents and invoices for drug imports of drug suppliers were all recorded with the tax code of Nghe An Dermatology Hospital.

No reopening date yet

According to information from Nghe An Dermatology Hospital, after closing and in the process of resolving arising violations, a new problem arose in the unit: On October 19, 2022, pharmacist Le Quang Ngoc - Head of Pharmacy - Medical Supplies Department (the only person with a pharmacy practice certificate, qualified to manage a pharmacy) submitted a resignation letter. After unsuccessful lobbying, the hospital decided to dismiss this pharmacist according to regulations.

After the scandals at the Pharmacy and the Pharmaceutical and Medical Supplies Warehouse, Nghe An Dermatology Hospital is gradually stabilizing and resuming operations. Photo: Thanh Chung

When pharmacist Le Quang Ngoc quit his job, Nghe An Dermatology Hospital encountered many difficulties in its operations, so it reported to the Department of Health. In November 2022, Nghe An Department of Health transferred a pharmacist (from Vinh City General Hospital), with a pharmacy practice certificate, to work at the hospital for 6 months.

Answering the question: "When will the Dermatology Hospital Pharmacy reopen?" - Mr. Huynh Phuc Son - Director of Nghe An Dermatology Hospital said: "It is not possible to give a clear and specific answer about the reopening date of the pharmacy because the Hospital must fully meet the necessary conditions, as well as redo the procedures to be licensed".

First, the Project on using public assets for business purposes of the Hospital (which has been submitted to relevant levels and sectors) must be approved by the Provincial People's Committee. Second, the Hospital must have a pharmacist with a practicing certificate working long-term at the hospital...

After meeting these two conditions, Nghe An Dermatology Hospital needs to apply for permission to set up a pharmacy to serve the people. Once permitted, the Hospital will proceed with the next steps such as bidding or contracting to the Pharmacy Department in accordance with legal regulations; completing the conditions regarding facilities and related licenses.

With the problems that have occurred around the Pharmacy of Nghe An Dermatology Hospital, it is clear that there is great responsibility of the leaders, collectives and individuals involved at the Hospital.