STATE auditors have called out the Department of Health (DOH) over drugs and medicines inventory worth P7.431 billion that were found to be “expired, near-expiry, damaged, overstocked, excessive, slow-moving (low usage), undistributed/distributed late.”
The audit team tagged the DOH for “deficient procurement planning, poor distribution and monitoring systems, and weakness in internal controls” that resulted in “wastage of government funds and resources.”
“Various drugs, medicines, and other types of inventories were found to be expired, nearly expired, lost, overstocked, excessive, slow-moving, delayed distribution or undistributed, and accepted below 18 months in the DOH warehouses and OUs (operating units),” the audit team said in a 2022 report released only yesterday.
The DOH said it has instructed all end units to strictly monitor the inventories with corresponding consumption, and for supply officers to regularly monitor remaining stocks prior to acceptance of deliveries.
The DOH Central Office (DOH-CO) said management will release guidelines pertaining to issuances of inventories and the establishment of a supply chain system design from the national level down to the local government units.
A breakdown provided in the COA report showed auditors found the slow-moving inventory worth P5.531 billion under the DOH-CO.
An additional P74.323 million in the same condition was found at DOH Region 13 – Caraga Center for Health Development (CHD) while an unstated value of slow-moving inventory was located in Ilocos Training and Regional Medical Center under DOH Region 1 (Ilocos Region).
Overstocking or excessive inventory was documented at the Bataan General Hospital and Medical Center with P109.45 million, and the Mariveles Mental Wellness and General Hospital (MMWGH) with P12.56 million under DOH Region 3 (Central Luzon Region); Far North Luzon General Hospital and Training Center with P50.25 million under DOH-Cordillera Administrative Region; Adela Serra Ty Memorial Medical Center with P14.58 million under DOH Region 13 (Caraga Administrative Region), and Mariano Marcos Memorial Hospital and Medical Center with P16.803 million under DOH Region 1.
“The presence of overstocked and slow-moving inventory items evidence excessive spending as the procured items comprised volume of inventory far more than what the CHDs/OUs presently need. As in the PYs (previous years), these deficiencies were also caused by breakdown of the inventory/supply management system,” auditors said.
They underscored what the DOH has to address: inadequate procurement planning; laxity/inadequate monitoring and reporting system; absence of periodic assessment of inventory movements; weak internal controls; ignoring standards on drug shelf life; and poor distribution system.
Cases of delayed distribution or undistributed drugs and medicines were discovered in DOH-Central Office totaling P1.512 billion and in Ilocos CHD worth P2.19 million.
Expired medicines worth P2.391 million were traced at Labuan General Hospital (P1.338 million), Conner District Hospital (P613,895) and Soccsksargen CHD (P439,425).
Drugs nearing expiry worth PP86.005 million were discovered in Western Visayas CHD (P58.15 million), Bataan General Hospital and Medical Center (P15.925 million), Dr. Jose N. Rodriguez Memorial Hospital (P8.6 million); Ilocos CHD (P2.14 million), and MMWGH (P1.11 million).
Deliveries accepted below the minimum 18 months before expiry date were found in the Davao Regional Medical Center (P16.05 million) under DOH Region 11 (Davao Region) and Ospital ng Palawan (P2.25 million) under DOH Region 4B (Mimaropa Region).
“Overall, the problem exposed management’s inability to safeguard, manage, and utilize health funds and resources economically and effectively,” the Commission on Audit said.
The COA recommended that the health secretary impose sanctions on suppliers who repeatedly violate guidelines, and order the proper disposal of expired drugs and medicines.
It added that suppliers be required to submit guarantee letters for deliveries that are below the standard shelf life while hospital pharmacy sections and end-user units to decline commitment letters for less than six months from date of expiration.
The commission likewise urged the DOH to fast-track issuance and distribution of near expiry items to prevent further wastage of government fund.
The CHDs and DOH operating units mentioned in the audit report issued commitments to take steps to improve management of inventories.
