Arya News - Maintaining excessive supplies would also entail additional costs on the part of the government in terms of manpower and warehouse space—both resources that “could have been better used to support health programs for the poor, rather than storing overstocked or slow-moving drugs and medicines.”
MANILA – The Commission on Audit (COA) has called out the Department of Health (DOH) after auditors found expired and nearly-expired drugs and medicines amounting to P34.8 million, and other inventories worth P99.4 million, which could place them at risk of possible wastage.
In its annual audit report for the DOH in 2024, COA cited the review of inventory reports and results of inventory counts among different Centers for Health Development (CHDs) and Operating Units which showed that drugs, medicines and medical supplies worth P34.8 million “have not been utilized before the end of their shelf life.”
Certain inventories worth P99.4 million were also nearing expiration or those with less than one-year of shelf life, which auditors and inspectors found either unutilized and undistributed to CHDs and operating units as of Dec. 31, 2024.
The DOH units, mostly hospitals, where the unused medicines and other inventories were found included those in Metro Manila, Ilocos Region, Calabarzon, Western Visayas, Central Visayas, Eastern Visayas, Zamboanga Peninsula, Davao Region and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
Causes
Some of the causes of expiration and near expiration identified by COA included the failure of DOH units to monitor the expiration dates in comparison with the remaining shelf life of the drugs and medicines, on top of failure to meticulously reconcile the inventories by the designated Inventory committee. Other reasons were inadequate inventory monitoring, failure of those in charge to consider historical consumption reports and current stock levels during the finalization of the procurement planning of the acid and bicarbonate concentrates, and lapses in the procurement process, among others.
State auditors pointed out rules laid down by the DOH itself, including its warehouse operations manual that states health commodities procured by the government should be treated with “vital importance to maintain the quality and potency during storage and distribution.”
They noted that the DOH’s own rules also stated that designated persons in charge should countercheck the expiration dates of commodities in the inventory. The DOH should likewise consistently coordinate with the end-user and supply planning unit on the available stocks and corresponding expiry dates of their commodities.
According to COA, the Guidelines for Drug Donations published by the World Health Organization state that all donated drugs “should have a remaining shelf-life of at least one year.”
“Overstocked or slow-moving drugs and medicines are exposed to the risk of possible wastage,” it added.
Wasted resources
Maintaining excessive supplies would also entail additional costs on the part of the government in terms of manpower and warehouse space—both resources that “could have been better used to support health programs for the poor, rather than storing overstocked or slow-moving drugs and medicines.”
“Overall, the problem exposed Management’s (DOH) inability to safeguard, manage and utilize health funds and resources economically and effectively,” the COA said.
State auditors then recommended, with the DOH agreeing, that the department revisit its existing rules on inventory management, and monitoring and improvement of procurement and contract specifications.
There should also be an enhanced forecasting allocation and supply planning, with the DOH institutionalizing controls for all donated and transferred items, they said.