The Commission on Audit (COA) revealed that four government-run hospitals in Bohol wasted P1.8 million worth of medicines that expired due to improper procurement practices.
COA said in its latest audit report that the four hospitals under the Provincial Government of Bohol are Garcia Memorial Provincial Hospital (GMPH) in Talibon, Teodoro B. Galagar District Hospital (TBGDH) in Jagna, Cong. Simeon G. Toribio Memorial Hospital (CSGTMH) in Carmen, and Catigbian District Hospital (CDH) in Catigbian.
These hospitals have the highest budget allocation for drugs and medicines in 2022 and were selected for the audit, which was conducted from November 10 to 23, 2023.
The audit team found out that the four hospitals incurred a total loss of P1,845,124.52 from expired medicines that were bought through bulk procurement.
COA said that the hospitals violated Section 361 of Republic Act No. 7160, which limits the procurement of drugs and medicines to a three-month requirement.
“Management procured its drugs and medicines for six-month periods, departing from the three-month requirement ceiling under Section 361 of Republic Act No. 7160 attributable to the incorrect implementation of bulk procurement, resulting in a total actual loss from expiration of P1,845,124.52 and exposure to the risk of further spoilage and expiration in the subsequent periods,” COA said in its report.
COA also said that the hospitals adopted a policy of allowing emergency purchases when the medicines reach 50% of the available stock or when there is an unexpected demand for more drugs.
However, COA said that this policy did not address the issue of medicine availability and instead increased the risk of drug spoilage and expiration.
“Management’s current concept of bulk procurement is subjecting all its drugs and medicines needs for a given semester and having the winning bidder deliver all at once the drugs and medicines pursuant to the contract being awarded, which covers the hospital’s needs for the six-month period,” COA said.
“Although this approach may be able to address the availability of drugs and medicines as soon as the winning bidder delivers … it directly contravenes the three-month requirement of R.A. 7160. And as these continue, management’s exposure to further losses from spoilage and expiration of drugs and medicines in the succeeding periods also continues,” it added.
COA recommended that the hospitals should follow the three-month requirement for procuring drugs and medicines and implement a proper inventory management system to prevent wastage and ensure quality health care. (with reports from the Manila Bulletin)