SENATE RULES COMMITTEE | AB 377| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 377 Author: Solorio (D) Amended: 8/6/12 in Senate Vote: 21 SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 9-0, 6/13/11 AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete McLeod, Vargas, Walters, Wyland SENATE APPROPRIATIONS COMMITTEE : 6-0, 8/13/12 AYES: Kehoe, Walters, Alquist, Lieu, Price, Steinberg NO VOTE RECORDED: Dutton ASSEMBLY FLOOR : 70-0, 5/12/11 (Consent) - See last page for vote SUBJECT : Pharmacy SOURCE : California Hospital Association DIGEST : This bill authorizes a centralized hospital packaging pharmacy to prepare medications, by performing specified functions for administration only to inpatients within its own general acute care hospital, or one or more general acute care hospitals under the same ownership and located within 75 miles of each other. ANALYSIS : Existing law: CONTINUED AB 377 Page 2 1. Provides for the practice of pharmacy and the licensing and regulation of pharmacies and pharmacists by the Board of Pharmacy (Board) within the Department of Consumer Affairs. 2. Defines "hospital pharmacy" as a pharmacy licensed by the Board, located within any licensed hospital, institution or establishment that maintains and operates organized facilities for the diagnosis, care, and treatment of human illnesses to which persons may be admitted for overnight stay. 3. Provides that "hospital pharmacy" also includes a pharmacy that may be located outside of the hospital, in another physical plant that is regulated under a hospital's consolidated license issued by the Department of Corrections and Rehabilitations or Department of Youth Authority. Specifies that the pharmacy in another physical plant shall provide pharmaceutical services only to registered hospital patients who are on the premises of the same physical plant in which the hospital is located. Specifies that the pharmacy services provided shall be directly related to the services or treatment plan administered in the physical plant. 4. State that any pharmacy that contracts to compound a drug for parenteral therapy, pursuant to a prescription, for delivery to another pharmacy, must report that contractual arrangement to the Board within 30 days of commencing that compounding. This bill: 1. This bill allows a centralized hospital packaging pharmacy to prepare medications for administration only to inpatients within its own general acute care hospital and one or more general acute care hospitals if the hospitals are under common ownership and located within a 75-mile radius of each other. 2. Authorizes a centralized hospital to perform the following specialized functions if each unit dose is AB 377 Page 3 barcoded as specified: A. Preparing unit dose packages for single administration to inpatients from bulk containers. B. Preparing compounded unit dose drugs for parenteral therapy for administration to inpatients. C. Preparing compounded unit dose drugs for administration to inpatients. 3. Defines "common ownership" to mean that the ownership information on file with the Board for the licensed pharmacy is consistent with the ownership information on file for the other licensed pharmacy or pharmacies. 4. Requires, in addition to pharmacy license requirement described in current law, a centralized hospital packaging pharmacy to obtain a specialty license from the Board prior to engaging in the functions authorized by this bill. 5. Requires the Board, before issuing and renewing the specialty license, to inspect the pharmacy and ensure that the pharmacy is in compliance with this bill and regulations it has established. 6. States a license to perform the functions described in this bill shall only be issued to a pharmacy that is licensed by the Board as a hospital pharmacy, and that the license shall be renewed annually and is not transferrable. 7. Sets the fee for issuance or annual renewal of a centralized hospital packaging pharmacy license at $600 and allows it to be increased by the Board to $800. 8. Allows a centralized hospital packaging pharmacy to prepare and store a limited quantity of the unit dose drugs in advance of receipt of a patient-specific prescription in a quantity as is necessary to ensure continuity of care for an identified population of inpatients of the general acute care hospital based on a AB 377 Page 4 documented history of prescriptions for that patient population. 9. Requires any unit dose medication produced by a centralized hospital packaging pharmacy to be barcoded to be readable at the inpatient's bedside. Upon reading the barcode, the following information shall be retrievable: A. The date the medication was prepared. B. The components used in the drug product. C. The lot number or control number. D. The expiration date. E. The National Drug Code Directory lot number. F. The name of the centralized hospital packaging pharmacy. 10.Requires the label for each unit dose medication produced by a centralized hospital packaging pharmacy to contain all of the following: A. The expiration date. B. The established name of the drug. C. The quantity of the active ingredient. D. Special storage or handling requirements. 11.Requires all compounding and packaging functions be performed only in the licensed centralized hospital packaging pharmacy and that pharmacy shall comply with all applicable federal and state statutes and regulations, including, but not limited to, regulations regarding compounding and, when appropriate, sterile injectable compounding. 12.Requires a centralized hospital packaging pharmacy and the pharmacists working in the pharmacy be responsible AB 377 Page 5 for the integrity, potency, quality, and labeled strength of any unit dose drug product prepared by the centralized hospital packaging pharmacy. Background Existing law requires medications for a hospital's patients to be prepared by a licensed pharmacy located on the hospital's premises. Automated processes implemented by a hospital or health system have the potential to provide additional patient protection through a reduction in medication errors. Many medication errors in hospitals have resulted from inadequate and inconsistent labeling and a lack of proper mechanisms to track medication through the distribution process to the patient. Recent reports show that technology like bar-coding facilitates more efficient medication administration and decreases medication errors. According to a study published in the New England Journal of Medicine, "Effect of Bar-Code Technology on the Safety of Medication Administration," use of the bar-code substantially decreased the rate of errors as well as potential adverse drug events. The report also concluded that the bar-code electronic medication administration is an important intervention to improve patient safety. Food and Drug Administration (FDA). Repackaging, distribution, and compounding in advance of a patient prescription are activities currently available only to licensed manufacturers, which are regulated by the United States FDA. Last year, in an email pertaining to a Virginia hospital using a model as proposed in this bill, which is virtually identical to AB 2077 (Soloria, 2010), the FDA stated that "Ýthe proposed health facility pharmacy] system does not need to register as a repacker/relabeler as long as they are servicing their own hospitals within the state of California and repackaged drugs are not commercially distributed and used only within your hospital facilities." While there has not been an official change in FDA policy, it is clear in the FDA's Compliance Policy Guide (460.200) as follows: "FDA will continue to defer to state authorities regarding pharmacy compounding of human drugs." Board Compounding Regulations . New regulations governing AB 377 Page 6 compounding took effect last summer. According to the Board, a Workgroup on Compounding was formed in 2004 comprised of board members, Board staff and industry representatives. The workgroup recognized that current pharmacy regulations addressing compounding only govern the physical circumstances, procedures and record keeping requirements for general compounding and do not address quality, strength or purity. The Board adopted regulations in Article 7 of Division 17 of Title 16 of the California Code of Regulations (commencing with Section 1751) to implement provisions for pharmacies that compound sterile injectable products as required in statute. As there were no similar provisions in regulation for general compounding, the Board approved the addition of language that will establish parameters and provide uniformity for pharmacies that carry out compounding in general (including sterile injectable). Pharmacies that compound sterile injectable products must go above and beyond the requirements for compounding in general. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee, minor costs annually to the Board from the Pharmacy Board Contingent Fund, offset by fees. Potentially major costs annually to the Department of Public Health from the Licensing and Certification Program Fund. SUPPORT : (Verified 8/14/12) California Hospital Association (source) AmerisourceBergen Board of Pharmacy California Pharmacists Association California Society of Health-System Pharmacists Los Angeles County Mercy Sharp University of California, San Francisco School of Pharmacy AB 377 Page 7 ASSEMBLY FLOOR : AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Silva, Skinner, Smyth, Solorio, Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Cedillo, Conway, Garrick, Gorell, Roger Hernández, Bonnie Lowenthal, Mitchell, Portantino, Torres JJA:do 8/14/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****
Human Medications, Human Drugs, Animal Medications, Animal Drugs, Pharmacy law, Pharmaceutical law, Compounding law, Sterile and Non Sterile Compounding 797 Compliance, Veterinary law, Veterinary Compounding Law; Health Care; Awareness of all Types of Compounding Issues; Pharmacy Benefit Managers (PBMs), Outsourcing Facilities Food and Drug Administration and Compliance Issues
Monday, August 20, 2012
California Senate Rules Committee: Proposed Law Regarding Compounding At Centralized Hospital Packaging Pharmacy
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