Managing transfers in pharmacy ownership

Tabled Report 4: 2018-19

Tabled date

2018-09-28

Report year

2018-19

Health

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: the Department of Health (the department)

   clarifies its role and obligations in the administration of the Pharmacy Business Ownership Act 2001 Act (the Act) and the skills and resources it needs to fulfil its functions effectively

2. QAO's text Addressed to: the Department of Health (the department)

   re-designs its internal controls so it can effectively administer the Act

   This should include:

   • revising the Pharmacy Ownership Business Rules and the notification checklist to include all relevant information relating to the notification process  
   • determining whether decision support tools such as the Monitoring of Drugs of Dependence System (MODDS) database can be modified to better support its notification process or if new tools are required
   • defining checks to detect whether pharmacists have undeclared ownership interests in a pharmacy through a corporation.

3. QAO's text Addressed to: the Department of Health (the department)

   Better defines the type of documents pharmacy owners need to provide to support the notification process.

   This should include:

   • requiring owners to provide documents that allow the department to thoroughly test all ownership requirements of the Act, including circumstances under which ownership of pharmacies can be made not legally binding due to control issues (139I)
   • requesting all relevant documentation at the time of the notification submission, including information to validate an individual’s identity such as date of birth
   • keeping sufficient records to enable process validation

4. QAO's text Addressed to: the Department of Health (the department)

   implements a process to monitor pharmacies’ ongoing compliance with the Act

   This should include establishing a monitoring and compliance program to review pharmacy ownership at regular intervals, for example, conducting random inspections of pharmacies at the department’s discretion.

5. QAO's text Addressed to: the Department of Health (the department)

   develops and implements a risk-based strategy for testing that existing commercial arrangements comply with sections 139B, 139H, and 139I of the Act.

Authoritative report — Queensland Audit Office

Report PDF on QAO